Long Unwinding Up Was Seen In The Nifty Futures - HDFC Securities
REMAIN BEARISH WITH STOP LOSS OF 11400
* Nifty witnessed heavy selling pressure and ended lower by 254 points on the back of weak global cues to close at 11250 levels
* Long unwinding was seen in Nifty Futures’ where Open Interest fell by 6% with Nifty falling by 2.21% Nifty Future premium fell to 5.55 from 10.30 points in the previous session.
* On the other hand, Short build up was seen in the Bank Nifty Futures where we have seen 17% rise in the Open Interest with Bank Nifty closed 3.02% lower.
* Nifty Open Interest Put Call ratio fell sharply to 1.07 levels from 1.37 levels. Amongst the Nifty options (24-September), Call writing was seen 11400-11500 levels, Indicating 11400-11500 level to act as a resistance going forward. On the lower side, immediate support is seen around 11000 level where Open Interest is highest amongst the Nifty Put Options
* Long build up is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 432 Cr with their Open Interest going up by 15602 contracts
To Sum It Up, Long unwinding seen in Nifty futures, short build up in Bank Nifty futures, fall in nifty open interest PCR on the back of Call writing at 11400-11500 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 11400 levels. On the lower side support is seen around 11000-11100 levels where Puts have been written
In the Bank Nifty our advice is to remain bearish with the stop loss of 21700 levels. On the lower side, support is seen in the vicinity of 21200-21000 levels.
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