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Nifty witnessed selling pressure near its ATH level but managed to close on a positive note and finally ended the day with the gains of 21.85 points to close at 16280.10 levels - HDFC Securities

F&O HIGHLIGHTS

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

REMAIN BULLISH WITH THE TRAILING STOP LOSS OF 16100 LEVELS​​​​​​​

* Nifty witnessed selling pressure near its ATH level but managed to close on a positive note and finally ended the day with the gains of 21.85 points to close at 16280.10 levels.

* Long build up was seen in Nifty Futures’ where Open Interest rose by 3% with Nifty gaining by 0.13%.

* Long build up was too seen in the Bank Nifty Futures, where we have seen 10% rise in the Open Interest with Bank Nifty rising by 0.01%.

* Nifty Open Interest Put Call Ratio fell to 1.30 levels from 1.35 levels. Amongst the Nifty options (12-Aug Expiry), Call writing was seen at 16300-16400 levels, Indicating Nifty is likely to find resistance in the vicinity of 16300-16400 levels. On the lower side, support is seen around 16200-16100 levels where we have seen call writing.

* Short build up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 288 Cr with their Open Interest going up by 9276 contracts.

To Sum It Up, Long build up in the Nifty and Bank Nifty Futures and long build up by the FIIS’ in the stock futures segment Indicates that one should remain optimistic for the markets.

Therefore, our advise is to remain bullish with the trailing stop loss of 16100 levels. 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 36300-36500 levels.

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