Short Covering Was Seen In The Bank Nifty Futures - HDFC Securities
REMAIN BULLISH WITH STOP LOSS OF 11000
* Benchmarks surged on Tuesday, snapping their four-day losing streak. Rally in Reliance Industries and private banks pushed the Indices higher. Firmness in other Asian indices boosted sentiment. Nifty has risen by 203.65 points on the back of strong global cues to close at 11095.25 levels
* Long built up was seen in Nifty Futures’ where Open Interest increased by 4.86% with Nifty rising by 1.73%. Nifty Future premium fell to 6.80 from 21.80 points in the previous session.
* On the other hand, short covering was seen in the Bank Nifty Futures where we have seen 9.88% fall in the Open Interest with Bank Nifty closed 1.80% higher. Bank Nifty Future premium is at 65 points.
* Nifty Open Interest Put Call ratio increased to 1.42 levels from 1.10 levels, on the back up sharp jump due to addition of Put options. Amongst the Nifty Options(06-Aug), Put writing was seen at 11000-11100 levels, Indicating Nifty is likely to find strong support around 11000 levels. On the higher side resistance is seen around 11200 where Calls have been written.
* To Sum It Up, Long build up in the Nifty Futures with short un winding seen in Bank Nifty & Put writing at 11000-11100 levels suggests Index may take some breather today or may consolidate then move higher.
* Therefore , our advise is remain bullish with the strict SL of 11000 levels. On the higher side resistance is seen in the vicinity of 11200-11250 levels where Calls have been written
* In the Bank Nifty our advice is to remain bullish with the stop loss of 21200 levels. On the higher side, resistance is seen in the vicinity of 22000-22200 levels
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