Bank Nifty Futures saw minor short covering, where Open Interest fell by 0.19 % with Bank Nifty - HDFC Securities
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2022/05/d47bfdcd2d2b7d3345955aeb92868d19.jpg)
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
F&O HIGHLIGHTS
SHORT COVERING WAS SEEN IN THE NIFTY AND BANK NIFTY FUTURES
GO LONG IN NIFTY WITH THE STOP LOSS OF 16200
* The Nifty ended with blockbuster gains on Friday amid strong global cues. Strength in index heavyweight Reliance industries and HDFC twins catapulted the indices higher. All the sectoral indices on the NSE advanced with media, realty and metal index gaining the most. The Nifty ended above the 16,250 mark. The investor sentiments were boosted after China cut its key lending rates and India's Finance Minister projected 8.9% GDP growth for FY23. Nifty finally closed up by 2.89% at 16266.15 levels.
* Short covering was witnessed in the Nifty Futures, as Open Interest decreased by 6.33% while the Nifty increased by 2.89%.
* Bank Nifty Futures saw minor short covering, where Open Interest fell by 0.19 % with Bank Nifty rose by 2.88 %.
* Nifty Open Interest Put Call ratio rose to 1.07 level from 0.80 levels. Among the Nifty options (27-May Expiry), call writing was observed at 16400 - 16500 levels, indicating that Nifty is expected to encounter strong resistance in the vicinity of 16400 - 16500 levels. On the downside, an immediate support is expected between the 16100 - 16200 levels, where we have witnessed Put writing.
* FIIS' short covering was observed in the Index Futures category, where they net purchased worth Rs 3012 Cr, with their open interest falling by 2613 contracts.
To summarise, Short covering in the Nifty and Bank Nifty futures, short covering by FIIs in the Index futures and put writing near 16100 - 16200 levels, indicates that the markets should be viewed with optimism
Therefore, we advise traders to open new long positions with the stop loss of 16200. On the higher side, the 16400 - 16500 levels will act as an immediate resistance
In the Bank Nifty, where short covering has occurred, our recommendation is to remain positive in the Bank Nifty with the stop loss 34000 level.
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
![](https://portfolio.investmentguruindia.com/uploads/news/Axis Securities Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Indiateam57.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/munishakhatwal57.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/geojit Financial Services.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/tatapower57.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/MP Ahammed.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Fintech Pre-budget expectation.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/uttarpradesh57.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Budget_3.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Cyberpeace.jpg)
Tag News
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/09/95f11bf3e1fc515ff0aed747520314dc.jpg)
Nifty registers best week in 2 months after rising for 6 consecutive sessions
![Midcap index rose more than the Nifty while Smallcap index rose less even as the advance decline ratio was up at 1.49:1 - HDFC Securities](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/09/75edce1399be6eb60b35089fc7edd6e2.jpg)
![USDINR Sept fut. facing resistance at 82.90, the horizontal line showing multiple tops - HDFC Securities](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2023/09/8d7e61aba9d23e598971d1fc095f2985.jpg)
More News
![](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2022/12/a3922793af0a4a2241c2f42322ffad1a.jpg)
Nifty has an immediate support placed at 188370 - Nirmal Bang
![Nifty May future witnessed sharp selling pressure through out the day mainly on the back of sell off in Technology stocks - HDFC Securities](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2022/05/8135a96a2d1a237e6bed256f24099fc6.jpg)
![Technical Quote On Today`s Market Performance 20 January 2021 by Mr. Nagaraj Shetti, HDFC Securities](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2021/01/0bec489b0fec13db142271c957b08875.jpg)
![Benchmark index is likely to trade volatile today with support at 17450 - Monarch Networth Capital](https://portfolio.investmentguruindia.com/investmentguruimages/upload/post/2022/08/f84169489e32575e35c16bf210998bea.jpg)