Nifty continued its downward journey for the third day - HDFC Securities
If Nifty holds 14500 level then create Long positions
* Indices slumped on Friday, led by broad-based selling pressure. The Nifty closed below the 14,550 mark. All the sectoral indices on the NSE ended in the red. Banks and financial shares witnessed major selling pressure. A spike in domestic and global bond yields coupled with rising coronavirus cases spoiled investors' appetite for risk assets. Nifty fell more than five hundred points and finally ended the day with the losses at 14529.15 down by 3.76%.
* Short built up was seen in Nifty Futures’ where Open Interest increased by 15.37% with Nifty future’s falling by 3.90%.
* Bank Nifty too saw massive short built up, where we have seen 41.27% increased in the Open Interest with Bank Nifty falling by 5%.
* Amongst the Nifty options (04-March Expiry), Call writing was seen at 14500 - 15000 levels, Indicating 14500 - 15000 levels will act as a strong resistance. On the lower side, support is seen around 14200 - 14300 where we have seen Put writing
To Sum It Up, short built in the Nifty and Bank Nifty Futures and fall in the Nifty Open Interest Put Call ratio on the back of Call writing at 14500 - 15000 levels, Indicates that one should remain cautious for the markets
Therefore, our advise is remain bearish, if market start to correct after opening otherwise traders may see rise in the Index after major fall on Friday's session
Our Bank Nifty advise remains same like Nifty, if after opening market corrects then Bank Nifty will also correct otherwise traders may see Bank Nifty heading towards 36000.
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