Another rally is on the cards

MUMBAI: FIIs were net sellers on Friday. Open interest has gone up in the overall derivative market. The put-call ratio too went higher up. “The banking counters showed more interest on the last trading day of the week, as a consequence of a dip in inflation and an expectation that the interest rates would not be hiked further,” said Viral Doshi, equity strategist at Networth Stock Broking.  

Nifty Futures closed at a 4.1-point premium to its current level of 4,219.40. On Friday, 3.26 lakh contracts were traded, while the turnover stood at Rs 6, 879.86 crore. The open interest in the index future was slightly down 0.34% at 2.94 crore.

Reliance Capital May series was the most actively traded stock future on Friday. Here, the open interest dipped by 3.37%, even as a turnover of Rs 1, 015.98 crore was witnessed. The stock future closed at Rs 907.45, which is a marginal Rs 0.45 discount to the Reliance Capital spot price.

Doshi said tremendous selling pressure was witnessed on auto counters. “Tata Motors is expecting lower sales growth, just like all other auto companies. The Bajaj news too may have had a hand,” he reasoned for the selling pressure on auto counters.

He sees consolidation in the market now on, especially after the rally noticed during the last few sessions. “We would again observe a rally after another few trading sessions as the market aims at an all-time high,” he predicts.