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LONG BUILD UP IS SEEN IN THE NIFTY FUTURES - HDFC Securities

F&O HIGHLIGHTS

ACCUMULATE LONGS WITH THE STOP LOSS OF 17600 LEVELS

* Nifty surged 276 points to close at all time high levels at 17823 levels.

* Long build up is seen in the Nifty Futures where Open Interest rose by 2% with Nifty rising by 1.57%

*  On the other hand, short covering is seen in Bank Nifty Futures’ where Open Interest fell by 11% with Bank Nifty closed with the whopping gains of 2.24%

* Nifty Open Interest Put Call Ratio increased sharply to 1.42 levels from 1.15 levels. Amongst the Nifty options (30-Sep Expiry), Put writing was seen at 17600-17800 levels, Indicating Nifty is likely to find support in the vicinity of 17600 - 17700 levels. On the higher side, an immediate resistance is seen in the vicinity of 17900 - 18000 levels where we have seen Call writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 742 Cr with their Open Interest going down by 10540 contracts.

To Sum It Up, Long build up in the Nifty futures, Short covering in the Bank Nifty Futures, rise in the Put Call Ratio on the back of Put writing at 17600 - 17800 levels, and short covering by the FIIs in the Index Futures segment Indicates that one should continue to remain optimistic for the markets.

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