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Long build up was seen in Nifty Futures’ where Open Interest rose by 6.21% with Nifty rising by 0.65% - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP WAS SEEN IN THE NIFTY FUTURES

BE BULLISH WITH TRAILING STOP LOSS OF 15700 LEVEL

* The markets ended with strong gains on Thursday amid positive global cues. The Nifty closed near the 15,750 level. Barring the Nifty Auto index, all sectoral indices on the NSE ended in green. Nifty finally closed up by 0.65% at 15737.75 level.

* Long build up was seen in Nifty Futures’ where Open Interest rose by 6.21% with Nifty rising by 0.65%.

* Unwinding was seen in the Bank Nifty Futures, where we have seen 5.62% fall in the Open Interest with Bank Nifty rising by 1.01%.

* Nifty Open Interest Put Call Ratio rose to 1.31 levels from 1.12 levels. Amongst the Nifty options (17-June Expiry), Put writing was seen at 15700 level, 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 maximum outstanding positions in the Call options.

To Sum It Up, long build up in Nifty futures, Unwinding seen in the Bank Nifty Futures & Put writing at 15700 Indicates that one should be optimistic for the markets.

Therefore, our advise is to be bullish with the trailing stop loss of 15700 level. On the higher side 15800-16000 level will act as an immediate resistance.

In the Bank Nifty, our advice is to buy on decline with SL of 34650 levels. On the higher side, resistance is seen in the vicinity of 35400-36000 levels.

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