IGI Logo

Nifty broke the three day losing streak on the back of strong global cues where it surged by 192 points to close at 15824 levels  - HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

ACCUMULATE LONG POSITIONS WITH STOP LOSS OF 15700 LEVELS​​​​​​​

* Nifty broke the three day losing streak on the back of strong global cues where it surged by 192 points to close at 15824 levels.

* Short covering was seen in Nifty Futures’ where Open Interest fell by 8% with Nifty rising by 1.23%

* Short covering was seen in Bank Nifty Futures’ too where Open Interest fell by 9% with Bank Nifty rising by 0.80%

* Nifty Open Interest Put Call Ratio rose to 1.10 levels from an oversold level of 0.81 levels. Amongst the Nifty options (29-July Expiry), Put writing was seen at 15700-15800 levels, Indicating Nifty is likely to find support in the vicinity of 15700-15800 levels. On the higher side, an immediate resistance is seen in the vicinity of 15900-16000 levels where we have seen Call writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 1152 Cr with their Open Interest going down by 7535 contracts.

To Sum It Up, short covering in the Nifty Futures, short covering in the Bank Nifty Futures, rise in the Nifty Open Interest Put Call ratio on the back of Put writing at 15700-15800 levels and short covering by the FIIS’ in the Index futures segment Indicates that one should be bullish for the markets.

Therefore, our advise is to accumulate long positions with the stop loss of 15700 levels. On the higher side 15900-16000 level will act as an immediate resistance where Calls have been written.

In the Bank Nifty, our advice is to accumulate long positions with stop loss of 34000 levels. On the higher side, resistance is seen in the vicinity of 35000-35300 levels.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer