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The Nifty Futures where Open Interest falling by 5% with Nifty rising by 1.3% - HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

CREATE LONG POSITION WITH THE STOP LOSS OF 18000 LEVELS​​​​​​​

* Nifty Future’s broke the three day losing streak on Friday where it rose more than 200 points from the intraday low and ended the day with the gains of 236 points to close at 18133.45 levels.

* Short covering was seen in the Nifty Futures where Open Interest falling by 5% with Nifty rising by 1.3%.

* Short covering was also seen in the Bank Nifty Futures where Open Interest fell by 12% with Bank Nifty rising by 0.5%.

* Nifty Open Interest Put Call ratio rose to 1.16 level on Friday from 0.99 levels on Thursday. Amongst the Nifty options (18-Nov Expiry), Put writing is seen at 18000 levels, Indicating Nifty is likely to find support in the vicinity of 17900 - 18000 levels. On the higher side, an immediate resistance is seen in the vicinity of 18300 - 18400 levels where we have seen Call writing. 

* Long build up is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 2103 Cr with their Open Interest going up by 5269 contracts.

To Sum It up, Short covering in the Nifty futures, Short covering in the Bank Nifty Futures, Put writing at 18000 levels and Long build up by FII’s in Index and Stock Futures segment Indicates that Indicates that one should be optimistic for the markets.

Therefore, our advise is to create longs with the stop loss of 18000 levels. On the higher side 18300-18400 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long with the strict stop loss of 38100 levels. On the higher side 39100-39500 level may act as resistance going forward.

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