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F&O HIGHLIGHTS

LONG BUILD UP WAS SEEN IN THE NIFTY FUTURES

GO LONG IN NIFTY IF SUSTAINS ABOVE 16400 LEVEL​​​​​​​

* The Nifty ended with strong gains on Friday, tracking positive global cues. The Nifty closed above the 16,350 mark. IT, banks, financials and auto stocks advanced. Oil & gas shares tumbled amid reports of possible levy of windfall tax by the government. Nifty finally closed up by 1.13% at 16352.45 level.

* Minor long build was seen in the Nifty Futures where Open Interest rose by 0.40% with Nifty rising by 1.13%.

* Short covering was seen in the Bank Nifty Futures where Open Interest fell by 2.80% with Bank Nifty rising by 1.48%.

* Nifty Open Interest Put Call ratio rose to 1.14 level from 0.98 levels. Amongst the Nifty options (02-June Expiry), Call writing is seen at 16500-16600 levels, Indicating Nifty is likely to find strong resistance in the vicinity of 16500 – 16600 levels. On the lower side, an immediate support is seen in the vicinity of 16200-16300 levels where we have seen Put writing .

* Short covering is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 873 Cr with their Open Interest going down by 823 contracts.

To Sum It up, Long build up in Nifty, Short covering in Bank Nifty Futures and Put writing at 16200-16300 levels Indicatesthat one should remain optimistic for the markets

Therefore for traders our advise is to create fresh longs If Nifty sustains above 16400 level with SL of 16200 levels. On the higher side 16500-16600 level will act as an immediate resistance where we have seen Call writing.

In the Bank Nifty, our advice is to remain bullish with the stoploss of 35500 .

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