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Nifty surged to record high levels on Thursday - HDFC Securities 

F&O HIGHLIGHTS

TRADERS CAN KEEP BUY ON DIP STRATEGY

REMAIN BULLISH WITH STOP LOSS OF 14800 LEVEL

* Nifty surged to record high levels on Thursday, as euphoria surrounding the Union Budget continued for fourth trading session. The Nifty closed a tad below the crucial 14,900 mark after scaling that level in intraday trade. The Nifty managed to close near 14,895.65 level up by 0.71%.

* Long build up was seen in Nifty Futures’ where Open Interest increased by 8.13% with Nifty rising by 0.71%. Nifty future’s premium turn in to discount of 0.30 points from the premium of 30.60 points.

* Bank Nifty future saw fall in open interest of 2.03% with rise in index level of 1.5% suggesting profit booking at higher level in the Index.

* Nifty Open Interest Put Call Ratio increased marginally to 1.51 levels from 1.46 levels. Amongst the Nifty options (11-Feb Expiry), Put writing was seen 14800-14900 levels, Indicating 14800 level will act as a strong support. On the higher side, resistance is seen around 14900 - 15100 levels where we have seen Call writing.

To Sum It Up, Long build up in the Nifty Futures & long unwinding in the Bank Nifty Futures & minor rise in the Nifty Open Interest Put Call ratio on the back of Put writing at 14800-14900 levels Indicates that one should remain bullish in the Nifty for few sessions or can keep buy on dip strategy. Therefore, our advise is to remain longs with the stop loss of 14800 levels.

On the higher side resistance is seen around 14900 -15100 levels where Calls have been written. In the Bank Nifty, our advice is to create short positions on higher levels with stop loss of 35750 level

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