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Nifty Futures where Open Interest rose by 1.51% with Nifty rising by 0.17% - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 17700 LEVELS

* The Nifty ended with modest gains on Friday. The Nifty closed above the 17,850 mark. IT shares advanced after Accenture announced strong Q4 earnings. Realty shares extended recent gains while FMCG and metal shares corrected. Nifty finally ended the day higher by 30 points at 17853.20 levels.

* Long build up was seen in the Nifty Futures where Open Interest rose by 1.51% with Nifty rising by 0.17%.

* On the other hand, unwinding was seen in Bank Nifty Futures’ where Open Interest fell by 6.16% with Bank Nifty rising marginally by 0.16%.

* Nifty Open Interest Put Call Ratio fell to 1.27 level from 1.46 level. Amongst the Nifty options (30-Sep Expiry), Put writing was seen at 17700-17800 levels, Indicating Nifty is likely to find support in the vicinity of 17700 - 17800 levels. On the higher side, an immediate resistance is seen at 18000 levels where we have seen Call writing.

* Long unwinding was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 315 Cr with their Open Interest going down by 939 contracts. To Sum It Up, Long build up in the Nifty futures and Put writing at 17700 – 17800 levels Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to accumulate long positions with trailing SL of 17700 level. On the higher side 18000 level may act as a resistance. In the Bank Nifty, where we have seen unwinding, our advice is to go long only If sustains above 37500 level.

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