IGI Logo

Nifty continued its downward journey for the third day - HDFC Securities 

F&O HIGHLIGHTS

LONG UNWINDING WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

* Markets plunged on Monday with the Nifty falling below the 14,700 mark. Rising COVID-19 cases and negative global cues spoiled sentiment. Barring the Nifty Metal index, all the sectoral indices on the NSE ended in the red. Metal shares were in demand on firm copper prices. Nifty ffinally ended the day with the losses of 306 point to close at 14675.50 levels.

* Long unwinding was seen in Nifty Futures’ where Open Interest fell by 3.53% with Nifty falling by 2.04%.

* Long unwinding was also seen in the Bank Nifty Futures, where we have seen 1.66% fall in the Open Interest with Bank Nifty falling by 1.70%.

* Amongst the Nifty options (25-Feb Expiry), Call writing was seen at 14700 - 14900 levels, Indicating 14700 - 14900 level will act as a strong resistance. On the lower side, support is seen around 14500 where we have seen Put writing

To Sum It Up, Long unwinding in the Nifty and Bank Nifty Futures & fall in the Nifty Open Interest Put Call ratio on the back of Call writing at 14700 - 14900 levels Indicates that one should remain cautious for the markets

Therefore, our advise is to create short position on rise with the stop loss of 14900 levels. On the lower side 14500 level will act as a support where Puts have been written

In the Bank Nifty, our advice is to create short position on rise with the stop loss of 36500 levels. On the lower side, support is seen in the vicinity of 35000 level.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer