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Nifty recovered more than 100 points from the morning lows and finally ended the day with the losses of 86 points at 17532 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY FUTURES AT LOWER LEVELS

ACCUMULATE LONGS WITH THE STOP LOSS OF 17400 LEVELS​​​​​​​

* Nifty recovered more than 100 points from the morning lows and finally ended the day with the losses of 86 points at 17532 levels.

* Long build up is seen in the Nifty Futures at lower levels where Open Interest rose by 4% with Nifty future recovered more than 100 points from the intraday low.

* On the other hand, long unwinding is seen in Bank Nifty Futures’ where Open Interest fell by 3% with Bank Nifty falling by 0.53%.

* Nifty Open Interest Put Call Ratio fell to 0.98 levels from 1.03 levels. Amongst the Nifty weekly options (07-Oct Expiry), Put writing was seen at 17400-17500 levels, Indicating Nifty is likely to find support in the vicinity of 17400 - 17500 levels. On the higher side, an immediate resistance is seen in the vicinity of 17700 - 17800 levels where we have seen Call writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 416 Cr with their Open Interest going down by 2709 contracts.

To Sum It Up, Long build up in the Nifty futures from lower levels and Put writing at 17400 - 17500 levels Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to accumulate long positions with trailing SL of 17400 level. On the higher side 17700-17800 levels will act as a resistance.

In the Bank Nifty, where we have seen long unwinding, our advice is to go long only above 37500 levels with SL of 37000.

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