IGI Logo

Nifty came out of its six day 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 six day consolidation and recorded new life high. Nifty ended the day with the gains of 82.15 points to close at 16364.40 levels.

* Long build up was seen in Nifty Futures’ where Open Interest rose by 7% with Nifty rising by 0.50%.

* Short covering was seen in the Bank Nifty Futures, where we have seen 7% fall in the Open Interest with Bank Nifty rising by 0.36%.

* Nifty Open Interest Put Call Ratio rose to 1.46 levels from 1.36 levels. Amongst the Nifty options (19-Aug Expiry), Put writing was seen at 16300-16200 levels, Indicating support has shifted upwards to 16200 levels from 16100 levels. On the higher side, resistance is seen in the vicinity of 16400-16500 levels where we have seen Call writing.

* Long unwinding up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 889 Cr with their Open Interest going down by 3957 contracts.

To Sum It Up, Long build up in the Nifty futures, Short covering in Bank Nifty Futures, Put writing at 16200-16300 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 16200 levels. On the higher side 16400-16500 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 35600 levels. On the higher side, resistance is seen in the vicinity of 36300-36600 levels.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer