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Nifty rose 80 points from the intraday low on the back of positive global cues - HDFC Securities

F&O HIGHLIGHTS

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

SUPPORT SEEN AROUND 16100​​​​​​​

* Nifty rose 80 points from the intraday low on the back of positive global cues and finally ended the day with the minor gain of 20 points to close at 16258.25 levels.

* Minor long build up was seen in Nifty Futures’ where Open Interest rose by 0.7% with Nifty rising by 0.12%

* Long build up was seen in Bank Nifty Futures’ too where Open Interest rose by 1% with Bank Nifty rising by 0.6%

* Nifty Open Interest Put Call Ratio fell to 1.35 from 1.40 levels. Amongst the Nifty options (12- Aug Expiry), Call writing was seen at 16300 levels, Indicating Nifty is likely to find resistance in the vicinity of 16300-16400 levels. On the lower side, an immediate support is seen in the vicinity of 16200-16100 levels where we have seen Put writing.

* Short covering up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 257 Cr with their Open Interest going up down 4419 contracts.

To Sum It Up, long build up in the Nifty and Bank Nifty Futures and short covering by FIIs in the Index futures segment Indicates that one should remain optimistic for the markets.

Therefore, our advise is to hold long positions with the stop loss of 16100. On the higher side 16300-16400 level will act as an immediate resistance where Calls have been written.

In the Bank Nifty, our advice is to hold long position with the stop loss of 35500 levels. On the higher side, resistance is seen in the vicinity of 36200-36400 levels.

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