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Nifty gained 61 points to close at all time high levels at 15880- HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

ACCUMULATE LONGS ON DECLINE WITH THE TRAILING STOP LOSS OF 15750 LEVELS 

* Nifty gained 61 points to close at all time high levels at 15880.

* Short covering was seen in Nifty Futures’ where Open Interest fell by 1% with Nifty rising by 0.40%.

* Short covering was seen in the Bank Nifty Futures too, where we have seen 2% fall in the Open Interest with Bank Nifty rising by 0.5%.

* Nifty Open Interest Put Call Ratio rose to 1.25 levels from 1.08 levels. Amongst the Nifty options (08-July Expiry), Call writing was seen at 15950-16000 levels, Indicating Nifty is likely to find resistance in the vicinity of 15950-16000 levels. On the lower side, support is seen around 15750-15800 levels which consists of highest OI amongst the weekly(08-July) Put Options.

* Long unwinding was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 319 Cr with their Open Interest going down by 7268 contracts.

To Sum It Up, Short covering in the Nifty and Bank Nifty Futures, Rise in the Nifty Open Interest Put Call ratio on the back of Put writing at 15800-15900 levels and long build up by FIIs’ in the Index and Stock Futures segment Indicates that one should remain optimistic for the markets.

Therefore, our advise is to remain bullish with the trailing stop loss of 15750 levels. On the higher side 15950-15600 level will act as an immediate resistance where Calls have been written

In the Bank Nifty, our advice is to accumulate longs on decline with the stop loss of 35200 levels. On the higher side, resistance is seen in the vicinity of 36000-36200 levels.

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