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Nifty witnessed positive trading activity throughout the day and ended higher by 121 to close at 14617.85- HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING IS SEEN IN THE NIFTY & BANK NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 14750 LEVELS

* Nifty witnessed positive trading activity throughout the day and ended higher by 121 to close at 14617.85.

* Short covering was seen in Nifty Futures’ where Open Interest fell by 1% with Nifty rising by 0.84%.

* Short covering was also seen in the Bank Nifty Futures, where we have seen 0.03% fall in the Open Interest with Bank Nifty rising by 1.6%.

* Nifty Open Interest Put Call Ratio rose to 1.04 levels from 0.92. Amongst the Nifty options (06- May Expiry), Call writing was seen at 14700-14800 levels, Indicating resistance is seen in the vicinity of 14700-14800 level. On the lower side, support is seen in the vicinity of 14400-14500 levels where we have seen Put writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 10 Cr with their Open Interest going down by 4246 contracts.

* To Sum It Up, short covering Nifty and Bank Futures, Put writing at 14500-14400 levels and short covering up by FIIs’ in the Index Futures segment that suggests Index may take some breather today or may consolidate then move higher.

Therefore, our advise is to remain cautious with the stop loss of 14750 levels. On the lower side 14400-14500 level will act as an immediate support where Puts have been written In the Bank Nifty, our advice is to remain cautious with the stop loss of 33100 levels. On the lower side, support is seen in the vicinity of 32300-31500 levels.

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