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Nifty gained 159 points despite weak Asian Market cues to end the at 17691 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY FUTURES

ACCUMULATE LONGS ON DECLINE WITH THE STOP LOSS OF 17500 LEVELS

* Nifty gained 159 points despite weak Asian Market cues to end the at 17691 levels.

* Long build up is seen in the Nifty Futures where Open Interest rose by 1% with Nifty future premium turned into premium of 15 points from discount of 2 points.

* On the other hand, short covering is seen in Bank Nifty Futures’ where Open Interest fell by 9% with Bank Nifty rising by 0.95%.

* Nifty Open Interest Put Call Ratio rose to 1.08 levels from 0.98 levels. Amongst the Nifty options (07-Oct Expiry), Put writing is seen at 17500-17600 levels, Indicating Nifty is likely to find support in the vicinity of 17500 - 17600 levels. On the higher side, an immediate resistance is seen in the vicinity of 17700 - 17800 levels where we have seen Call writing.

* Long unwinding was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 737 Cr with their Open Interest going down by 14978 contracts.

To Sum It Up, Long build up in the Nifty futures and rise in the Nifty Open Interest Put Call Ratio on the back of Put writing at 17500 - 17600 levels Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to accumulate long positions on decline with trailing SL of 17500 level. On the higher side 17700-17800 levels will act as a resistance.

In the Bank Nifty, where we have seen short covering, our advice is to go long on decline with SL of 36800 levels.

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