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Nifty gained sharply on the back of strong global cues- HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY AND BANK NIFTY FUTURES

ACCUMULATE LONG POSITIONS WITH TRAILING SL OF 14400 LEVELS

* Nifty gained sharply on the back of strong global cues and better than expected result from the ICICI bank which led to sharp rally in the banking stocks and finally ended the day with the gains of 144 points to close at 14485 levels

* Long build up is seen in Nifty Futures’ where Open Interest rose by 3% with Nifty rising by 1%.

* Long build up is seen in the Bank Nifty Futures too, where we have seen 15% rise in the Open Interest with Bank Nifty rising by 1.7%.

* Nifty Open Interest Put Call Ratio rose to 1.38 levels from 1.27 levels. Amongst the Nifty options (29-April Expiry), Put writing was seen at 14400-14500 levels, Indicating 14400 level will act as a strong support. On the higher side, an immediate resistance is seen in the vicinity of 14550-14600 levels where we have seen Call writing.

* Long build up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 1218 Cr with their Open Interest going up by 3593 contracts.

To Sum It Up, long build up in both Nifty and Bank Nifty Futures, rise in the Nifty Open Interest Put Call ratio on the back of Put writing at 14400-14500 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 accumulate long positions with the trailing stop loss of 14400 levels. On the higher side 14550-14600 level will act as an immediate resistance where Calls have been written

In the Bank Nifty, our advice is to accumulate long positions with the stop loss of 31700 levels. On the higher side, an immediate resistance is seen in the vicinity of 32500-32700 levels, followed by 33000 levels.

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