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Long build up was seen in Nifty Futures` where Open Interest rose by 4% with Nifty rising by 0.07% - HDFC Securities

F&O HIGHLIGHTS 

LONG BUILD UP WAS SEEN IN THE NIFTY FUTURES

REMAIN BULLISH WITH THE STOP LOSS OF 15100 LEVELS

* Nifty recovered more than fifty points from the low and ended the day with the gains of 11 points to close at 15208 levels.

* Long build up was seen in Nifty Futures’ where Open Interest rose by 4% with Nifty rising by 0.07%.

* On the other hand, Short build was seen in the Bank Nifty Futures, where we have seen 7% rise in the Open Interest with Bank Nifty falling by 0.8%.

* Nifty Open Interest Put Call Ratio fell to 1.22 levels from 1.30 levels. Amongst the Nifty options (27-May Expiry), Put writing was seen at 15100-15200 levels, Indicating support is seen in the vicinity of 15100-15200 level. On the higher side, resistance is seen in the vicinity of 15300- 15350 levels where we have seen Call writing.

* Long build up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 1477 Cr with their Open Interest going up by 28591 contracts.

To Sum It Up, long build up in Nifty futures, Put writing at 15100-15200 levels and long build up by FIIs’ in the Index Futures segment Indicates that one should remain optimistic for the markets.

Therefore, our advise is to remain bullish with the stop loss of 15100 levels. On the higher side 15300-15350 level will act as an immediate resistance where Calls have been written

In the Bank Nifty, where we have seen short build up, our advice is to go long only above 35000 levels. On the lower side, support is seen in the vicinity of 34200-34500 levels.

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