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F&O HIGHLIGHTS

PUT WRITING SEEN AT 15700-15800 LEVELS

ACCUMULATE LONG POSITIONS WITH STOP LOSS OF 15700 LEVELS

* Nifty broke the two day winning streak on the back of weak global cues where it fell by 32 points to close at 15824 levels.

* Minor short build up was seen in Nifty Futures’ where Open Interest rose by 2% with Nifty falling by 0.2%

* Short build up was seen in Bank Nifty Futures’ too where Open Interest rose by 3% with Bank Nifty falling by 0.2%

* Nifty Open Interest Put Call Ratio fell to 1.10 levels from 1.15 levels. Amongst the Nifty options (29-July Expiry), Put writing was seen at 15700-15800 levels, Indicating Nifty is likely to find support in the vicinity of 15700-15800 levels. On the higher side, an immediate resistance is seen in the vicinity of 15900-16000 levels where we have seen Call writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 74 Cr with their Open Interest going down by 3072 contracts

To Sum It Up, Put writing at 15700-15800 levels, short covering by FIIs in the Index futures segment and both call writing and Put writing by FIIS’ in the Index option segment Indicates that downside is limited and one should continue to remain bullish for the markets.

Therefore, our advise is to accumulate long positions with the stop loss of 15700 levels. On the higher side 15900-16000 level will act as an immediate resistance where Calls have been written.

In the Bank Nifty, our advice is to accumulate long positions with stop loss of 34500 levels. On the higher side, resistance is seen in the vicinity of 35200-35500 levels.

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