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F&O HIGHLIGHTS

Nifty Open Interest Put Call ratio fell to 0.88 levels from 0.92 levels - HDFC Securities 

SHORT COVERING WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

GO LONG IN NIFTY BY KEEPING STOP LOSS AT 16400 LEVEL.

* The Nifty settled with robust gains on Thursday, rising for the third straight day. The Nifty opened at 16,757.10 mark and traded with strong gains for most part of the day, tracking strong Asian cues. The index sharply pared gains and hit the low of 16,447.90 in mid-afternoon trade, following a weak opening in European stock market. It finally settled near 16,600 level due to fag-end buying. Barring the Nifty IT index, all the sectoral indices on the NSE ended in the green. FMCG shares were in demand. Nifty finally closed up by 1.53% at 16594.90.

* Short covering was seen in the Nifty Futures where Open Interest fell by 5.01% with Nifty rising by 1.53%.

* Bank Nifty Futures too saw short covering where Open Interest fell by 3.44% with Bank Nifty rising by 1.95%.

* Nifty Open Interest Put Call ratio fell to 0.88 levels from 0.92 levels. Amongst the Nifty options (17-Mar Expiry), Call writing is seen at 16700-16800 levels, Indicating Nifty is likely to find strong resistance in the vicinity of 16700 - 16800 levels. On the lower side, an immediate supportis seen in the vicinity of 16400-16500 levels where we have seen Put writing .

* Short covering is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 1570 Cr with their Open Interest going down by 25324 contracts.

To Sum It up, Short covering in the Nifty and Bank Nifty Futures, Short covering by FII’s in the Index futures segment & Put writing seen between 16400 – 16500 levels suggests that market may consolidate for coming sessions

Therefore, If our markets opens lower as our SGX Nifty is suggesting, our advise is to go long in the Nifty by keeping stop loss at 16400 level

In the Bank Nifty, which outperformed the Nifty yesterday, our advice is to go longs If Bank Nifty sustains and trades above 34000 after opening.

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