Long build-up seen for the first time in April series, Nifty may resume its uptrend: Angel Broking

Views of Mr. Jay Purohit (Technical and Derivative Analyst, Angel Broking):

"Our market started the session on a flat note and continued moving higher right from the opening tick. As a result, the Nifty ended the session at the highest point of the day. After many sessions, we witnessed a long build-up in Nifty as the open interest rose by around 14% in intraday, which is a sign of relief for the Bulls. It is observed that the long positions are getting formed mainly in May series as there is some unwinding seen in April series. The rally was led by heavyweight counters like HDFC Bank, LT, HDFC and AXISBANK. The BankNifty has outperformed in today's session along with formation of fresh long positions in current series.

As far as index options is concerned, good amount of unwinding was seen in 9200 call options, indicating that the call writers were in hurry to cover their shorts. On the other hand, 9100, 9150 and 9200 put options were active and added decent fresh positions. The highest open interest has been shifted from 9000 to 9100 put options (as per Intraday data), which is a positive sign. Considering the overall activity of today's session; we are expecting some positive momentum to continue in upcoming session too. Thus, traders are advised to trade with a positive bias and focus more on stock specific moves."

Source : Equity Bulls

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