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Nifty recovered more than 150 points from the intraday low and finally ended - HDFC Securities 

F&O HIGHLIGHTS

LONG UNWINDING WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

ACCUMULATE LONG POSITIONS ON DECLINE WITH SL OF 14900

* Nifty recovered more than 150 points from the intraday low and finally ended the day with the losses of 2 points to close at 15106 levels.

* Long unwinding was seen in Nifty Futures’ where Open Interest fell by 0.42% with Nifty falling by 2 points.

* Long unwinding was seen in the Bank Nifty Futures too, where we have seen 3% fall in the Open Interest with Bank Nifty falling by 0.76%.

* Nifty Open Interest Put Call Ratio fell to 1.30 levels from 1.38 levels. Amongst the Nifty options (11-Feb Expiry), Put writing was seen at 14900-15000 levels, Indicating 14900 level will act as a strong support. On the higher side, resistance is seen in the vicinity of 15200-15300 levels where we have seen Call writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 141 Cr with their Open Interest going down by 570 contracts.

To Sum It Up, Long unwinding in the Nifty Futures(No short build up), Long unwinding in the Bank Nifty Futures, Put writing at 14900-15000 levels and short covering by the FIIs in the Index Futures segment Indicates that one should continue to remain bullish for the markets Therefore, our advise is accumulate long positions on decline with the trailing stop loss of 14900 levels.

On the higher side 15200-15300 level will act as a resistance where Calls have been written In the Bank Nifty, our advice is to buy on decline around 35500 with the stop loss of 35000 levels. On the higher side, resistance is seen in the vicinity of 36500-36300 levels.

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