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Nifty witnessed volatile trading activity throughout the day - HDFC Securities 

F&O HIGHLIGHTS

SHORT COVERING WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

REMAIN BULLISH WITH STOP LOSS OF 14800

* Nifty witnessed volatile trading activity throughout the day and ended lower by 101.45 points to close at 14929.50 level.

* Short covering was seen in Nifty Futures’ where Open Interest fell by 1.49% with Nifty falling by 0.67 %. Nifty Future premium rose to 39.25 from 20.45 points in the previous session.

* Short covering was also seen in Bank Nifty Futures’ where Open Interest fell by 5% with Bank Nifty falling by 0.61%.

* Nifty Open Interest Put Call ratio fell to 0.93 levels from 1.02 levels. Amongst the Nifty options (18-March) , Call writing was seen 15000 level, Indicating 15000-15100 level to act as a resistance going forward. On the lower side, immediate support is seen around 14800 level where puts have been written.

* Short build up is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 497 Cr with their Open Interest going down by 445 contracts.

To Sum It Up, short covering in the Nifty and in Bank Nifty Futures, Put writing at 14800 level and short covering by the FIIs’ in the Stock Futures segment Indicates that, Index may take some breather today or may consolidate then move higher. Therefore , our advise is remain bullish with the strict SL of 14800 level.

On the higher side resistance is seen at 15000-15100 levels where Calls have been written. In the Bank Nifty our advice is to remain bullish with the stop loss of 34600 levels. On the higher side, resistance is seen in the vicinity of 35700-36000 levels

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