F&O Outlook: Markets may open positive

The markets may, however, open positive tomorrow. The Nifty rebounded from its crucial support level of 3790 and closed at 3816.70. Moreover, the Nifty July futures discount narrowed to 13 points from 33 points. The July futures shed open interest of 778,150 shares despite trading volumes of 37.40 million shares, indicating short-covering by the bear operators.

There was a lot of stock-specific activity in Wednesday's trading. Ranbaxy Laboratories bounced back 14.75 per cent after being battered by 24 per cent in the last two sessions. The Ranbaxy July futures saw short-covering of 1.11 million shares after the promoter assured the US authorities of all cooperation in their probe.

The July futures of Renuka Sugar firmed up 7.39 per cent due to fresh long build-up of 1.43 million shares. The company's rating was upgraded following the 25 per cent in alcohol prices and the expected jump in sugar rates.

The BSE realty index was the biggest loser, declining by 6.3 per cent. Unitech, DLF and HDIL weakened due to the creation of fresh short positions. There are fears of a decline in the housing demand on account of the higher borrowing costs. Moreover, Credit Suisse Group cut the stock rating of DLF and Unitech, and Citigroup cut the rating of Unitech from buy to hold.