IGI Logo

Nifty gained 131 points, despite negative Asian markets cues and ended the day at 17822 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE BANK NIFTY FUTURES

REMAIN BULLISH WITH THE TRAILING STOP LOSS OF 17700 LEVELS

* Nifty gained 131 points, despite negative Asian markets cues and ended the day at 17822 levels

* Short covering is seen in the Nifty Futures where Open Interest fell by 0.14% with Nifty rising by 0.74%.

* On the other hand, long build up is seen in Bank Nifty Futures’ where Open Interest rose by 3% with Bank Nifty rising by 0.40%.

* Nifty Open Interest Put Call Ratio rose to 1.20 from 1.08 levels. Amongst the Nifty options (07-Oct Expiry), Put writing was seen at 17700-17800 levels, Indicating Nifty is likely to find support in the vicinity of 17700 - 17800 levels. On the higher side, an immediate resistance is seen in the vicinity of 17900 - 18000 levels where we have seen Call writing.

* Long unwinding was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 580 Cr with their Open Interest going down by 8691 contracts.

To Sum It Up, Long build up in the Bank Nifty futures, short covering in the Nifty Futures and rise in the Nifty Open Interest Put Call ratio on the back of Put writing at 17700 - 17800 levels Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to accumulate long positions with trailing SL of 17700 level. On the higher side 17900-18000 levels will act as a resistance.

In the Bank Nifty, where we have seen long build up, our advice is to go long with SL of 37300 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