Momentum set to continue

F&O OUTLOOK

With the weekly oscillator being in line with the quarterly oscillator, one could expect further momentum in the next couple of weeks.

The breadth of the stocks futures during the three trading days remained extremely positive with only 20 out of 227 stocks futures closed in the red.

The losers were from sectors such as cement, capital goods, metals and consumer goods while the big gainers were from technology, telecom and fertilisers sector.

The Nifty May futures contracts witnessed 33 per cent rollovers while open interest in April future declined sharply by 40 per cent due to short covering by bears. The rollovers in May futures were at premium indicating built-up long positions.

The derivative segment has seen long built-up in mid cap counters such as Chambal Fertilisers, Bombay Dyeing, Development Credit Bank, Aptech, Wire & Wireless, Ispat Industries, JP hydro Power, Tech Mahindra and IRB Infra.

These stocks have gained 15-40 per cent in three days while open interest up by over 30-400 per cent.

The Q4 performance of Infosys Technologies triggered fresh buying in tech counter with Infosys Technologies, HCL Technologies, TCS and Wipro gained by 10-15 per cent on short covering and built-up of fresh long positions.

Among the major gainers, Chambal Fertilisers rose by 38.2 per cent fresh long positions. However, with almost two-third of the weekly gains coming on the last day, the stock is likely to witness profit booking in the coming days.

A total of 95 per cent of Chambal Fertilisers