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Published on 16/09/2020 11:09:12 AM | Source: HDFC Securities Ltd

Long Build Up Was Seen In The Nifty Futures - HDFC Securities

Posted in Market Outlook| #Market Outlook #HDFC Securities

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Long Build Up Was Seen In The Nifty FuturesHDFC Securities

F&O HIGHLIGHTS

REMAIN BULLISH WITH STOP LOSS OF 11400

* Nifty witnessed sideways movement for the most part of the day and rose sharply in the final hour of the trade and finally it ended higher by 81.75 points on the back of strong global cues to close at 11521 levels.

* Long buildup was seen in Nifty Futures’ where Open Interest rose by 2% with Nifty rising by 0.71%. Nifty Future premium fell to 5.60 from 11.90 points in the previous session.

* On the other hand, short covering was seen in the Bank Nifty Futures where we have seen 7% fall in the Open Interest with Bank Nifty closed 1.65% higher.

* Nifty Open Interest Put Call ratio rose to 1.47 levels from 1.36 levels. Amongst the Nifty options (17-September), Put writing was seen 11400-11300 levels, Indicating 11400 level to act as a support going forward. On the higher side, immediate resistance is seen around 11600-11700 level where calls have been written.

* Short covering is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 84 Cr with their Open Interest going down by 54 contracts

 

To Sum It Up, long build up in the Nifty Futures, short covering in Bank Nifty Futures and rise in nifty open interest PCR on the back of put writing at 11300-11400 levels indicates that one should be optimistic for the market.

Therefore, our advise is remain bullish with the strict SL of 11400 levels. On the higher side resistance is seen around 11700 levels where Calls have been written

In the Bank Nifty our advice is to remain bullish with the stop loss of 22100 levels. On the higher side, resistance is seen in the vicinity of 22700-22900 levels

 

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