IGI Logo

Nifty continued its upward journey for the third day in the row on the back of positive global cues - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE BANK NITY FUTURES

* Nifty continued its upward journey for the third day in the row on the back of positive global cues. Nifty ended the day with the gains of 35.80 points to close at 16294.60 levels.

* Long build up was seen in Nifty Futures’ where Open Interest rose by 5% with Nifty rising by 0.22%.

* Minor short build up was seen in the Bank Nifty Futures, where we have seen 5% rise in the Open Interest with Bank Nifty falling by 0.5%.

* Nifty Open Interest Put Call Ratio fell to 1.43 levels from 1.53 levels. Amongst the Nifty options (12-Aug Expiry), Call writing was seen at 16300-16400 levels, Indicating stiff resistance near 16300-16400 levels. On the lower side, support is seen in the vicinity of 16200-16100 levels where we have seen Put writing.

* Short build up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 365 Cr with their Open Interest going up by 3326 contracts.

To Sum It Up, short build up in Bank Nifty futures, fall in put call ratio on the back of call writing at 16300-16400 levels and short build up by FIIs’ in the Index Futures segment Indicates that one should be cautious for the markets.

Therefore, our advise is to book profits and add long position at lower levels. On the lower side 16200-16100 level will act as an immediate support where Puts have been written

In the Bank Nifty, our advice is to liquidate longs below 35500 levels. On the lower side, support is seen in the vicinity of 35300-35100 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