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Nifty gained more than 200 points from the low and finally ended the day with the gains of 110 points- HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP WAS SEEN IN THE BANK NIFTY FUTURES

ACCUMULATE LONG POSITIONS WITH SL OF 14200 LEVELS

* Nifty gained more than 200 points from the low and finally ended the day with the gains of 110 points to close at 14406 levels

* Short covering is seen in Nifty Futures’ where Open Interest fell by 2% with Nifty rising by 0.77%.

* On the other hand, Long build up was seen in the Bank Nifty Futures, where we have seen 9% rise in the Open Interest with Bank Nifty rising by 2.2%.

* Nifty Open Interest Put Call Ratio rose sharply to 1.27 levels from 1.08 levels. Amongst the Nifty options (29-April Expiry), Put writing was seen at 14200-14300 levels, Indicating 14200 level will act as a strong support. On the higher side, an immediate resistance is seen in the vicinity of 14500-14600 levels where we have seen Call writing

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 438 Cr with their Open Interest going down by 16741 contracts.

To Sum It Up, First sign of Short covering in the Nifty Futures, long build up in the Bank Nifty Futures, rise in the Nifty Open Interest Put Call Ratio on the back of Put writing at 14200-14300 levels and short covering by FIIs’ in the Index Futures segment Indicates that one should be optimistic for the markets.

Therefore, If our markets opens lower as SGX Nifty is suggesting, our advise is to use that decline to accumulate long positions with the stop loss of 14200 levels. On the higher side 14500-14600 level will act as an immediate resistance where Calls have been written

In the Bank Nifty, where we have seen long build up, our advice is to accumulate long positions with the stop loss of 31000 levels. On the higher side, resistance is seen in the vicinity of 32000- 32300 levels.

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