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Published on 2/06/2020 11:15:49 AM | Source: HDFC Securities Ltd

Accumulate Long Positions With The Stop Loss Of 9700 - HDFC Securities

Posted in Market Outlook| #Market Outlook #HDFC Securities

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Accumulate Long Positions With The Stop Loss Of 9700  - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY FUTURES

* Nifty continued its upward journey for the forth day in the row on the back of strong global cues where it rose by 245 points to close at 9826 levels

* Long build up is seen in Nifty Futures’ where Open Interest rose by 5% with Nifty rising by 2.57%

* On the other hand, Short covering is seen in Bank Nifty Futures’ where Open Interest fell by 4% with Bank Nifty rising by 3.4%

* Nifty Open Interest Put Call ratio fell to 1.53 levels from 1.61 levels. Amongst the Nifty Weekly Options(05-June) Put writing is seen at 9700-9800 levels, indicating 9700 to act as strong support levels going forward. On the other hand immediate resistance is seen in the vicinity of 10000-10100 levels where Calls have been written.

* Long build up is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 136 Cr with their Open Interest going up by 6826 contracts.

To Sum It Up, long build up in the Nifty Futures’, short covering in the Bank Nifty Futures, Put writing at 9700-9800 levels and long build up by the FIIs’ in the Index Futures segment Indicates that one should remain optimistic for the markets.

Therefore our advice is to accumulate long positions with the stop loss of 9700 levels . On the higher side an Immediate resistance is seen in the vicinity of 10000-10100 levels where we have seen huge Call OI build up.

In the Bank Nifty our advice is to remain bullish with the trailing stop loss of 19600 levels. On the upside, resistance is seen around 20300 levels.

 

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