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Nifty witnessed volatile trading activity throughout the day and ended higher by 245 points - HDFC Securities

F&O HIGHLIGHTS

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

REMAIN BULLISH WITH STOP LOSS OF 14800

* Nifty witnessed volatile trading activity throughout the day and ended higher by 245 points on the back of strong global cues to close at 14923.15 levels

* Long buildup was seen in Nifty Futures’ where Open Interest rose by 2% with Nifty rising by 1.67%.

* Long buildup was also was seen in the Bank Nifty Futures where we have seen 14% rise in the Open Interest with Bank Nifty closed 3.9% higher.

* Nifty Open Interest Put Call ratio rose to 1.40 levels from 1.11 levels. Amongst the Nifty options (20-May), Put writing was seen 14800-14700 levels, Indicating 14700 level to act as a support going forward. On the higher side, immediate resistance is seen around 15200-15300 level where calls have been written.

* Long buildup is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 886 Cr with their Open Interest going up by 5111 contracts.

To Sum It Up, long build up seen in the Nifty and in Bank Nifty futures put writing at 14700-14800 levels indicates that one should be optimistic for the market.

Therefore, our advise is remain bullish with the strict SL of 14800 levels. On the higher side resistance is seen around 15200-15300 levels where Calls have been written.

In the Bank Nifty our advice is to remain bullish with the stop loss of 33000 levels. On the higher side, resistance is seen in the vicinity of 34100-34500 levels

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