LONG UNWINDIDNG UP WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES - HDFC Securities
REMAIN BEARISH WITH STOP LOSS OF 11600
* Nifty fell sharply during the last hour of the trade and finally ended marginally lower by 11.15 points to close at 11504.95 levels
* Long unwinding was seen in Nifty Futures’ where Open Interest fell by 10% with Nifty falling by 0.10%. Nifty Future premium rose to 10.30 from 6.30 points in the previous session.
* Long unwinding was also seen in the Bank Nifty Futures where we have seen 4% fall in the Open Interest with Bank Nifty closed 1.3% lower.
* Nifty Open Interest Put Call ratio fell to 1.37 levels from 1.43 levels. Amongst the Nifty options (24-September), Call writing was seen 11600-11700 levels, Indicating 11600-11700 level to act as a resistance going forward. On the lower side, immediate support is seen around 11500- 11400 level where puts have been written.
* Short covering is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 1900 Cr with their Open Interest going down by 13822 contracts.
To Sum It Up, Long unwinding seen in Nifty and Bank Nifty futures, fall in nifty open interest PCR on the back of Call writing at 11600-11700 levels and long unwinding in stock futures segment by FIIS’ indicates that one should be cautious for the market.
Therefore, our advise is remain bearish with the strict SL of 11600 levels. On the lower side support is seen around 11400 levels where Puts have been written
In the Bank Nifty our advice is to remain bearish with the stop loss of 22400 levels. On the lower side, support is seen in the vicinity of 21700-21500 levels
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