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Nifty broke the seven day winning streak where it fell by 58 points to close at 18418 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE NIFTY AND BANK NIFTY FUTURES

ACCUMULATE LONGS ON DECLINE WITH THE STOP LOSS OF 18300 LEVELS​​​​​​​

* Nifty broke the seven day winning streak where it fell by 58 points to close at 18418 levels.

* Minor Short build up is seen in the Nifty Futures where Open Interest rose by 1% with Nifty falling by 0.32%.

* Short build up is seen in Bank Nifty Futures’ too where Open Interest rose by 5% with Bank Nifty falling by 0.36%.

* Amongst the Nifty options (21-Oct Expiry), Put writing is seen at 18300-18400 levels during last few days, Indicating Nifty is likely to find support in the vicinity of 18300 - 18400 levels. On the higher side, an immediate resistance is seen in the vicinity of 18500 - 18600 levels where we have seen Call writing.

* Long build up is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 1771 Cr with their Open Interest going up by 25744 contracts.

To Sum It up, Put writing at 18300 - 18400 levels and long build up by the FIIs in the Index Futures segment Indicates that one should be bearish only below 18300 levels

Therefore, our advise is to accumulate long positions on declines with trailing SL of 18300 level. On the higher side 18500-18600 levels will continue to act as a resistance.

In the Bank Nifty, our advice is to go long with trailing SL of 39300 levels. On the higher side 39800-40000 level may act as resistance going forward

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