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The Bank Nifty, our advice is to accumulate longs with the stop loss of 35600 levels - HDFC Securities

F&O HIGHLIGHTS

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

HOLD LONG POSITION WITH THE STOP LOSS OF 16400​​​​​​​

* Nifty rose more than 100 points from the intraday low on the back of positive Asian and European market cues and finally ended the day with the gain of 164.70 points to close at 16529.10 levels.

* Long build up was seen in Nifty Futures’ where Open Interest rose by 7% with Nifty rising by 1.01%.

* Long build up was seen in the Bank Nifty Futures too, where we have seen 1.3% rise in the Open Interest with Bank Nifty rising by 0.65%.

* Nifty Open Interest Put Call Ratio rose to 1.73 levels from 1.66 levels. Amongst the Nifty options (18-Aug Expiry), Put writing was seen at 16400-16300 levels, Indicating support has shifted upwards to 16400 levels from 16200 levels. On the higher side, resistance is seen in the vicinity of 16600-16700 levels where we have seen Call writing.

* Long build up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 631 Cr with their Open Interest going up by 13587 contracts.

To Sum It Up, Long build up in the Nifty and Bank Nifty futures, Put writing at 16400-16300 levels and long build up by FIIs’ in the Index and Stock Futures segment Indicates that one should remain optimistic for the markets.

Therefore, our advise is to remain bullish with the trailing stop loss of 16400 levels. On the higher side 16600-16700 level will act as an immediate resistance where Calls have been written

In the Bank Nifty, our advice is to accumulate longs with the stop loss of 35600 levels. On the higher side, resistance is seen in the vicinity of 36300-36600 levels.

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