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Nifty Futures where Open Interest fell by 4% with Nifty rising by 0.95%. - HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING IS SEEN IN THE NIFTY FUTURES

BUY ON DECLINES WITH SL OF 17400 LEVELS IN NIFTY AND 36700 IN BANK NIFTY

* Nifty recouped most of the Monday’s losses where it ended the day with the gains of 165 points to close at 17562 levels.

* Short covering is seen in the Nifty Futures where Open Interest fell by 4% with Nifty rising by 0.95%.

* On the other hand, Long build up is seen in Bank Nifty Futures’ where Open Interest rose by 1.7% with Bank Nifty rising by 0.20%.

* Nifty Open Interest Put Call Ratio rose to 1.15 levels from 0.98 levels. Amongst the Nifty options (23-Sep Expiry), Put writing was seen at 17400-17500 levels, Indicating Nifty is likely to find support in the vicinity of 17400 - 17500 levels. On the higher side, an immediate resistance is seen in the vicinity of 17700 - 17800 levels where we have seen Call writing.

* Long build up was seen by FIIS’ in the Index Futures segment where they net bough worth Rs 283 Cr with their Open Interest going up by 7146 contracts.

To Sum It Up, Long build up in the Bank Nifty futures, Short covering in the Nifty futures, rise in the Nifty Put call ratio on the back of Put writing at 17400 - 17500 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 accumulate long positions on decline with trailing SL of 17400 level. In the Bank Nifty, where we have seen long build up, our advice is to remain bullish with trailing SL of 36700 level.

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