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Nifty came out of its long two month consolidation and recorded new life high  - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY FUTURES

* Nifty came out of its long two month consolidation and recorded new life high. Nifty ended the day with the gains of 245 points to close at 16130.70 levels.

* Long build up was seen in Nifty Futures’ where Open Interest rose by 12% with Nifty rising by 1.55%.

* Short covering was seen in the Bank Nifty Futures, where we have seen 15% fall in the Open Interest with Bank Nifty rising by 1.35%.

* Nifty Open Interest Put Call Ratio rose to 1.65 levels from 1.25 levels. Amongst the Nifty options (05-Aug Expiry), Put writing was seen at 16000-15900 levels, Indicating support has shifted upwards to 16000 levels from 15800 levels. On the higher side, resistance is seen in the vicinity of 16200-16300 levels where we have seen Call writing.

* Massive Long build up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 2537 Cr with their Open Interest going up by 6812 contracts.

To Sum It Up, Long build up in the Nifty futures, Short covering in Bank Nifty Futures, Put writing at 16000-15900 levels and long build up by FIIs’ in the Stock Futures segment Indicates that one should remain optimistic for the markets.

Therefore, our advise is to remain bullish with the trailing stop loss of 15950 levels. On the higher side 16200-16300 level will act as an immediate resistance where Calls have been written

In the Bank Nifty, our advice is to accumulate longs with the stop loss of 34900 levels. On the higher side, resistance is seen in the vicinity of 35600-35900 levels.

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