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Nifty Index rallied for the second day on Tuesday -  HDFC Securities 

F&O HIGHLIGHTS

INDEX MAY SEE SIDEWAYS MOVE FOR FEW SESSIONS

REMAIN BULLISH WITH STOP LOSS OF 14500 LEVELS

* Nifty Index rallied for the second day on Tuesday, as investors cheered the Union Budget announcements. Positive global cues also lifted the sentiment. The Nifty managed to close near 14,650 level led by rally in banks and auto shares.

* Nifty continued its upward journey where it surged by 366 points on the back of strong global cues to close at yet another new high at 14647.85 levels.

* Minor profit booking / short covering was seen in Nifty Futures’ where Open Interest decreased marginally by 1.02% with Nifty rising by 2.57%.

* Profit booking / Short covering was seen in the Bank Nifty Futures, where we have seen 10.78% fall in the Open Interest with Bank Nifty rising by 3.40%

* Nifty Open Interest Put Call Ratio fell marginally to 1.39 levels from 1.41 levels. Amongst the Nifty options (04-Feb Expiry), Put writing was seen 14300-14700 levels, Indicating 14500 – 14700 levels will act as a strong support. On the higher side, resistance is seen around 14700 - 14800 levels where we have seen Call writing.

* To Sum It Up, minor profit booking with short covering in the Nifty Futures, short covering in the Bank Nifty Futures, minor fall in the Nifty Open Interest Put Call ratio on the back of Put writing at 14300-14700 levels Indicates that one should expect consolidation in the Nifty or side ways move in the Nifty for few sessions.

* Therefore, our advise is to remain longs with the stop loss of 14500 levels. On the higher side resistance is seen around 14800 levels where Calls have been written.

* In the Bank Nifty, Where we have seen short covering, our advice is to remain bullish with stop loss of 34000 levels. On the higher side, resistance is seen in the vicinity of 34500 - 34800 levels

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