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The Nifty surged for third consecutive session on Wednesday -  HDFC Securities 

F&O HIGHLIGHTS

TRADERS CAN KEEP BUY ON DIP STRATEGY

REMAIN BULLISH WITH STOP LOSS OF 14700 LEVEL

* The Nifty surged for third consecutive session on Wednesday, as euphoria surrounding the Union Budget continued. The Nifty closed tad below the crucial 14,800 mark after scaling that level in intraday trade. FMCG and realty shares declined while pharma and PSU banks shares rallied. The Nifty managed to close near 14,789.95 level up by 0.97%.

* Long build up was seen in Nifty Futures’ where Open Interest increased by 4.63% with Nifty rising by 0.97%. Nifty future’s premium narrowed to 30.60 points from 48.15 points.

* Bank Nifty too saw long build up as Open Interest increased by 11.08% with rise in price by 1.18%.

* Nifty Open Interest Put Call Ratio increased marginally to 1.46 levels from 1.39 levels. Amongst the Nifty options (04-Feb Expiry), Put writing was seen 14700-14800 levels, Indicating 14700 level will act as a strong support. On the higher side, resistance is seen around 14900 - 15100 levels where we have seen Call writing.

To Sum It Up, Long build up in the Nifty Futures & Bank Nifty Futures & minor rise in the Nifty Open Interest Put Call ratio on the back of Put writing at 14700-14800 levels Indicates that one should remain bullish in the Nifty for few sessions or can keep buy on dip strategy. Therefore, our advise is to remain longs with the stop loss of 14700 levels.

On the higher side resistance is seen around 14900 -15100 levels where Calls have been written.

In the Bank Nifty, our advice is to remain bullish with stop loss of 34500 levels. On the higher side, resistance is seen in the vicinity of 35200 - 35500 levels

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