IGI Logo

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

F&O HIGHLIGHTS

SHORT COVERING WAS SEEN IN THE NIFTY FUTURES

* The BSE Sensex ended almost flat, while the 50-unit Nifty ended with minor gains after a volatile session on Tuesday. Metal and realty shares advanced while banks shares extended recent losses. Index witnessed value buying after recent steep losses. In the past five sessions, the Sensex fell 4.62% and the Nifty corrected 4.17%. Nifty finally ended the day with the minor gain of 0.22% to close at 14707.80 level.

* Minor short covering was seen in Nifty Futures’ where Open Interest fell by 0.34% with Nifty futures rising by 0.27%.

* Although Bank Nifty closed in the negative traders may have created long positions as most of the yesterday session Bank Nifty was trading in a flat range with positive basis.

* Amongst the Nifty options (25-Feb Expiry), Call writing was seen at 14700 - 14900 levels, Indicating 14700 - 14900 levels will act as a strong resistance. On the lower side, support is seen around 14600 where we have seen Put writing

To Sum It Up, minor short covering in the Nifty, fresh long positions created in the Bank Nifty Futures, minor rise in the Nifty Open Interest Put Call ratio on the back of Put writing at 14600 levels suggests On every dip traders can buy Nifty or Bank Nifty and on every rise they should create short positions as we are expecting sideways move in both the indies.

Therefore, our advise is remain bullish with the stop loss of 14600 level. On the higher side 14800 - 14900 levels will act as a resistance

In the Bank Nifty, our advice is to remain bullish with the stop loss of 35000 level. On the higher side, resistance is seen in the vicinity of 35600 - 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