IGI Logo

Nifty continued its downward journey for the third day - HDFC Securities 

F&O HIGHLIGHTS

SHORT COVERING WAS SEEN IN THE NIFTY FUTURES

* Nifty witnessed positive trading activity throughout the day yesterday and finally ended higher by 232.40 points to close at 14761.55 levels.

* Short covering was seen in Nifty Futures’ where Open Interest fell by 6.4% with Nifty rising by 1.60%.

* Long build up was seen in the Bank Nifty Futures , where we have seen 8% rise in the Open Interest with Bank Nifty rising by 1.3%.

* Nifty Open Interest Put Call Ratio rose to 1.05 levels from 0.93 levels. Amongst the Nifty options (04-Mar Expiry), Put writing was seen at 14700-14500 levels, Indicating 14500 level will act as a strong support. On the higher side, resistance is seen in the vicinity of 14900-15000 levels where we have seen Call writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 1498 Cr with their Open Interest going down by 15062 contracts.

To Sum It Up, Short covering in the Nifty futures, Long build up in Bank Nifty Futures, Rise in the Nifty Open Interest Put Call ratio on the back of Put writing at 14700-14500 levels and short covering by the FIIs in the Index Futures segment Indicates that one should continue to remain bullish for the markets.

Therefore, our advice is to remain bullish with the trailing stop loss of 14650 levels. On the higher side 14900-15000 level will act as an immediate resistance where Calls have been written

In the Bank Nifty, our advice is to buy on decline with the stop loss of 35100 levels. On the higher side, resistance is seen in the vicinity of 35800-36000 levels.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer