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Nifty Futures’ where Open Interest fell by 0.5% with Nifty rising by 1.29%.  - HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING IS SEEN IN THE NIFTY & BANK NIFTY FUTURES

REMAIN BULLISH WITH STOP LOSS OF 14850

* Nifty ended on a strong note where it ended higher by 185 points on the back of strong global cues to close at 15108 levels

* Short Covering was seen in Nifty Futures’ where Open Interest fell by 0.5% with Nifty rising by 1.29%.

* Short covering was also seen in the Bank Nifty Futures where we have seen 4% fall in the Open Interest with Bank Nifty closed 1.4% higher

* Nifty Open Interest Put Call ratio fell to 1.39 levels from 1.40 levels. Amongst the Nifty options (20-May), Put writing was seen 14900-14800 levels, Indicating 14800 level to act as a support going forward. On the higher side, immediate resistance is seen around 15200-15300 level where calls have been written.

* Long buildup is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 3076 Cr with their Open Interest going up by 9899 contracts.

To Sum It Up, Short covering in the Nifty and in Bank Nifty futures, put writing at 14800-14900 levels and Long build by FII’s in the Index future segment indicates that one should be optimistic for the market

Therefore, our advise is remain bullish with the strict SL of 14850 levels. On the higher side resistance is seen around 15200-15300 levels where Calls have been written. In the Bank Nifty our advice is to remain bullish with the stop loss of 33500 levels. On the higher side, resistance is seen in the vicinity of 34300-34600 levels

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