IGI Logo

Indices rallied for the third straight session on Wednesday - HDFC Securities 

F&O HIGHLIGHTS

MINOR LONG BUILDUP WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

REMAIN BULLISH WITH TRAILING SL OF 15100

* Indices rallied for the third straight session on Wednesday led by gains in banks, financials and metal stocks. The Nifty settled near the 15,250 level. Barring the Nifty Auto index, all the sectoral indices on the NSE ended in the green. Stocks rallied across the globe as easing US Treasury yields fuelled demand for riskier assets. Nifty finally closed 2.19% higher at 15245.60 level.

* Long build up was seen in Nifty Futures’ where Open Interest rose by 1.4% with Nifty rising by 2.2%.

* The Minor Long build up was seen in the Bank Nifty Futures, where we have seen 0.13% rise in the Open Interest with Bank Nifty rising by 3%.

* Nifty Open Interest Put Call Ratio rose to 1.44 levels from 1.20 levels. Amongst the Nifty options (04-Mar Expiry), Put writing was seen at 15100-15000 levels, Indicating 15000 level will act as a strong support. On the higher side, resistance is seen in the vicinity of 15300-15500 levels where we have seen Call writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 1372 Cr with their Open Interest going down by 5455 contracts.

To Sum It Up, Minor Long build up in the Nifty and Bank Nifty Futures, rise in the Nifty Open Interest Put Call ratio on the back of Put writing at 15100-15000 levels and short covering by the FIIs’ in the Index Futures segment Indicates that one should continue to remain bullish for the markets.

Therefore, our advise is to remain long in Nifty with the trailing stop loss of 15100 level. On the higher side 15300-15500 level will act as a resistance where Calls have been written

In the Bank Nifty, our advice is to remain long with the stop loss of 36100 levels. On the higher side, resistance is seen in the vicinity of 36900-37300 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