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Nifty continued its upward journey for the third day in the row where it ended the day with the gains of 36 points- HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP WAS SEEN IN THE NIFTY FUTURES

ACCUMULATE LONG POSITIONS ON DECLINE WITH THE STOP LOSS OF 14400 LEVELS

* Nifty continued its upward journey for the third day in the row where it ended the day with the gains of 36 points to close at 14618 levels

* Long build up was seen in Nifty Futures’ where Open Interest rose by 7% with Nifty rising by 0.25%.

* On the other hand, Long unwinding was seen in the Bank Nifty Futures, where we have seen 3% fall in the Open Interest with Bank Nifty falling by 0.4%.

* Amongst the Nifty options (22-April Expiry), Put writing was seen at 14400-14500 levels, Indicating 14400 level will act as a strong support. On the higher side, an immediate resistance is seen in the vicinity of 14700-14800 levels where we have seen Call writing.

* Minor Long build up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 55 Cr with their Open Interest going up by 19956 contracts.

To Sum It Up, Long build up in the Nifty Futures, Put writing at 14400-14500 levels and long build up by the FIIs’ in the Index Futures segment Indicates that one should continue to remain optimistic for the markets

Therefore, If Nifty Opens lower by 200 points as SGX Nifty is suggesting, our advise is to use that decline to accumulate long positions with the stop loss of 14400 levels on the closing basis. On the higher side 14700-14800 level will act as an immediate resistance where Calls have been written

In the Bank Nifty, where we have seen long unwinding, our advice is to accumulate long positions in the region of 31000-31500 levels with the stop loss of 30500 levels on closing basis.

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