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Nifty continued its upward journey for the sixth day in the row - HDFC Securities 

F&O HIGHLIGHTS

SHORT COVERING WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

REMAIN BULLISH WITH STOP LOSS OF 15000 LEVELS

* Nifty continued its upward journey for the sixth day in the row where it rose by 192 points to close at 15116 levels.

* Short covering was seen in Nifty Futures’ where Open Interest fell by 0.13% with Nifty rising by 1.28%.

* Short build up was seen in the Bank Nifty Futures too, where we have seen 8% fall in the Open Interest with Bank Nifty rising by 0.9%.

* Nifty Open Interest Put Call Ratio rose to 1.52 levels from 1.41 levels. Amongst the Nifty options (11-Feb Expiry), Put writing was seen at 15000-15100 levels, Indicating 15000 level will act as a strong support. On the higher side, resistance is seen in the vicinity of 15200-15400 levels where we have seen Call writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 491 Cr with their Open Interest going down by 4672 contracts.

To Sum It Up, Short covering in the Nifty and Bank Nifty Futures, Rise in the Nifty Open Interest Put Call ratio on the back of Put writing at 15000-15100 levels and short buildup by the FIIs in the Index Futures segment Indicates that one should continue to remain bullish for the markets Therefore, our advise is remain bullish with the trailing stop loss of 15000 levels.

On the higher side 15200-15400 level will act as an immediate resistance where Calls have been written In the Bank Nifty, our advice is to buy on decline with the stop loss of 35500 levels. On the higher side, resistance is seen in the vicinity of 36500-37000 levels.

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