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Long build up was seen in Nifty Futures’ where Open Interest rose by 5.35% with Nifty rising by 0.39% - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP WAS SEEN IN THE NIFTY FUTURES

BUY ON DIP FOR BOTH THE INDICES

* Nifty ended with small gains on Friday, supported by firmness in IT Stocks. Metals and pharma stocks were also in demand. Positive global cues boosted sentiment. Nifty finally closed up by 0.39% to 15799.35

* Long build up was seen in Nifty Futures’ where Open Interest rose by 5.35% with Nifty rising by 0.39%.

* Short build was seen in the Bank Nifty Futures, where we have seen 3.58% rise in the Open Interest with Bank Nifty falling by 0.24%.

* Long unwinding is seen by FIIS in the Index Futures segment where they net sold worth Rs 122 Cr with their Open Interest going down by 4100 contracts

* Nifty Open Interest Put Call Ratio fell to 1.35 levels from 1.52 levels. Amongst the Nifty options (17-June Expiry), Put writing was seen at 15600-15700 levels, Indicating support is seen around 15700 level. On the higher side, resistance is seen in the vicinity of 15800-16000 levels where we have seen Call writing.

To Sum It Up, long build up in Nifty futures & Put writing at 15600 - 15700 levels Indicates that one should remain optimistic for the markets.

Therefore, our advise is to buy on dip for both the Indices with the stop loss of 15600 level for Nifty and for Bank Nifty is 34800 level.

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