USE ANY DECLINE TO CREATE FRESH LONG POSITIONS BY KEEPING SL AT 21000 LEVEL
To Sum it up, higher open Interest in the Nifty Futures’ as compared to last series (long rollover), FIIS long to short ratio in the Index Futures at 2.28, highest since November 2022 (Long build up by FIIS in the Index Futures segment), FIIS aggressive buying in cash markets and sharp rise in the Nifty Open Interest Put Call ratio on the back of Put writing at 21000-21500 levels indicates that downside is limited in the Nifty
Technically, Nifty has been consistently moving higher in the last few weeks by making new all time high level. Nifty continues to hold above the 20 day EMAand momentum indicators like the 10-week RSI and MFI are showing strength. Therefore our advise would be to remain optimistic for the Jan series with SLof 21000 levels and use only decline to create fresh long positions
However considering higher stock futures’ positions which in turn indicates higher leveraged positions, Call writing at 21500-22000 levels and sharp risein the Nifty from November lows during last two series, suggests possibility of a running correction should not be ruled out. Therefore traders may create fresh long positions in the correction by keeping stop loss at 21000 level
BANK NIFTY – REMAIN BULLISH WITH SL OF 47000
In the Bank Nifty, where we have seen aggressive Put writing, our advice is to accumulate long positions on declines with a SL of 47000. On the higher side,49000-49500 levels is likely to act as an immediate resistance. A move above 49500 could trigger short covering which could push the Bank Nifty towards 50500-51000 levels.