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Nifty continued its winning streak for the third day on the trot where it gained by 54 points - HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING WAS SEEN IN THE NIFTY FUTURES

ACCUMULATE LONGS WITH SL OF 14700 LEVELS

* Nifty continued its winning streak for the third day on the trot where it gained by 54 points to close at 14874 levels

* Minor short covering was seen in Nifty Futures’ where Open Interest fell by 2% with Nifty rising by 0.37%.

* On the other hand, long unwinding was seen in the Bank Nifty Futures, where we have seen 8% fall in the Open Interest with Bank Nifty falling by 0.6%.

* Nifty Open Interest Put call Ratio fell to 1.20 levels from 1.29 levels. Amongst the Nifty options (15-April Expiry), Put writing was seen at 14700-14900 levels, Indicating 14700 level will act as a strong support. On the higher side, resistance is seen around 15000 levels where we have seen Call writing earlier.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 262 Cr with their Open Interest going down by 1461 contracts.

To Sum It Up, Long build up in the Nifty Futures, Put writing at 14700-14900 levels and short covering by the FIIs’ in the Index Futures segment Indicates that one should continue to remain optimistic for the markets

Therefore, our advise is to accumulate long positions on decline with the strict SL of 14700 levels. On the higher side 15000 level will act as a resistance where Calls have been written

In the Bank Nifty, where we have seen long unwinding, our advice is to remain bearish with the stop loss of 33300 levels. On the lower side, support is seen in the vicinity of 32300-32500 levels.

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