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Short build up was seen in Nifty Futures` where Open Interest rose by 0.58% with Nifty falling by 0.13%. - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

BE BULLISH IF NIFTY SUSTAINS ABOVE 15700 LEVEL

* The markets ended with small losses on Friday, tracking negative global cues. The Nifty settled above the 15,650 mark after hitting a record high of 15,733.60 in morning trade. Banks shares corrected after the Reserve Bank of India's monetary policy outcome. Nifty finally closed 0.13% down at 15670 level.

* Short build up was seen in Nifty Futures’ where Open Interest rose by 0.58% with Nifty falling by 0.13%.

* Short build was seen in the Bank Nifty Futures too, where we have seen 7.79% rise in the Open Interest with Bank Nifty falling by 1%.

* Nifty Open Interest Put Call Ratio fell to 1.30 level from 1.52 level. Amongst the Nifty options (10-June Expiry), Put writing was seen at 15400-15600 levels, Indicating support is seen around 15600 levels. On the higher side, resistance is seen in the vicinity of 15800-16000 levels where we have seen Call writing.

To Sum It Up, short build up in Nifty futures, short build up in the Bank Nifty Futures, Call writing at 15700-15800 levels Indicates that one should remain cautious for the markets.

Therefore, our advise is to create fresh long positions if Nifty sustains above 15700 level in the opening trade with the stop loss of 15600 level.

In the Bank Nifty, our advice is to buy on decline with SL of 35000 level. On the higher side, resistance is seen in the vicinity of 35500-36000 levels.

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