Weekly Derivative Outlook by HDFC Securities: Feb, 07 2026
By Prime Research | Updated at: Feb 9, 2026 02:18 PM IST
Remain Bullish with Trailing Stop Loss of 25500 Levels
Immediate Resistance Is Placed In The Vicinity Of 25800-25900 Levels, Followed By 26300
Derivative data continues to suggest a bullish outlook for the Nifty in the coming week. This view is predicated on the back of short covering in Nifty Futures, Put writing at 25500-25600 levels and first sign of short covering by FIIS in the Index futures segment.
Therefore, our advice is to remain bullish and accumulate longs on any dips with SL of 25500 levels.
On the upside, Nifty is likely to encounter an immediate resistance in the vicinity of around 25800-25900 levels, where we have seen aggressive call writing in the weekly expiry. Any close above 25900 level would result into further short covering which might push Nifty to next resistances of 26300-26400 levels.
Bank Nifty Outlook:
Remain Bullish With Stop Loss of 59500
Long build-up has been observed in Bank Nifty futures, with 8% rise in open interest coinciding with a 0.86% rise over the past extended week. In the option segment we have seen aggressive Put writing at 59500-60000 levels, suggesting strong support around those levels. Hence, we recommend maintaining a positive stance with the stop loss of 59500 level. On the upside, significant call writing activity indicates strong resistance in the 60,800 – 61,000 zone.
Any close above 61000 level would result into short covering which could push Bank Nifty towards 61700-62000 levels.
Short Covering Was Seen in Nifty Futures
During the extended week on the back of budget announcement on 1st Feb, we have seen 11% fall in Open Interest in the Nifty Futures, accompanied by a 1.47% rise in the Nifty, indicating short covering.
On the other hand, long build up was seen in the Bank Nifty Futures, where we have seen 8% rise in the open interest with 0.86% rise in the Bank Nifty.
Put Writing Was Seen at 25500; Calls Have Been Written at 25800, Followed by 26000
Nifty Open interest Put Call Ratio rose to 0.96 levels on Friday from 0.90 levels last week.
Amongst the Options, Aggressive Put writing was seen at 25500-25600 levels, indicating 25500 level is likely to act as a strong support in the coming days.
On the other hand, Calls have been written at 25800 level, suggesting 25800-25900 levels will act as an immediate resistance, followed by 26300-26400 levels.
Short Covering Was Seen by FIIs’ in Index Futures Segment
Short covering was seen by FIIs’ in the Index Futures’ segment, where they net bought worth Rs 7395 Cr with Open Interest going down by 18538 contracts. If we were to see breakup, FIIs have covered shorts in the Nifty futures while long build up was seen in the Bank Nifty futures.
In the stock futures segment, we have seen a long build up, where they net bought worth Rs 415 Cr with Open Interest going up by 148519 contracts.
FIIs Long to Short Ratio Has Started Rising on the Back of Short Covering, Highest in Two Months
Long Build Up Is Seen in the Auto, Fmcg, New Age, Oil & Gas & Power. Technology Sector Witnessed Short Build Up
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