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Bank Nifty Futures too saw unwinding of positions where we have seen 1.61% fall in the Open Interest with Bank Nifty rising by 0.20% - HDFC Securities

F&O HIGHLIGHTS

UNWINDING WAS SEEN IN BOTH THE INDEX FUTURES

EXPECT THE SIDE WAYS MOVE FOR THE BOTH INDICES

* The Nifty ended with minor gains on Wednesday. After recording heavy losses in the afternoon trade, the benchmarks sharply pared losses in late trade. PSU banks and metal shares rallied while IT and FMCG shares declined. Nifty closed almost flat at 15576.20.

* Unwinding of positions was seen in Nifty Futures’ where Open Interest fell by 5.39% with Nifty rising marginally by 0.01%.

* Bank Nifty Futures too saw unwinding of positions where we have seen 1.61% fall in the Open Interest with Bank Nifty rising by 0.20%.

* Nifty Open Interest Put Call Ratio fell to 1.27 levels from 1.32 levels. Amongst the Nifty options (03-June Expiry), 15400-15500 levels saw maximum Put outstanding, Indicating support is seen around 15500 level. On the higher side, resistance is seen in the vicinity of 15700-15800 levels where we have seen maximum Call Options OI for the weekly series.

To Sum It Up, unwinding positions in both the Indices futures, Maximum outstanding positions at 15400 – 15500 levels in Puts and 15700 – 15800 levels in Calls suggesting market may consolidate for few sessions.

Therefore, our advise is to buy on dips and sell on rise for Nifty and Bank Nifty futures with stop loss 15500 level for Nifty and 35000 for Bank Nifty. On the higher side resistance is placed at 15800 for the Nifty and 36000 level for the Bank Nifty.

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