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Market remained choppy throughout the session amid weak global cues  - HDFC Securities

F&O HIGHLIGHTS

MARGINAL SHORT BUILD UP IS SEEN IN THE BANK NIFTY FUTURES

BE CAUTIOUS TILL NIFTY CLOSES ABOVE 17500; SUPPORT SEEN AROUND 17300

* The Nifty ended flat with some positive bias on Friday. Market remained choppy throughout the session amid weak global cues. Media, IT and FMCG shares advanced while banks shares declined. Nifty finally ended the day with the gain of 15.75 points to close at 17369.25 levels.

* Marginal unwinding was seen in Nifty Futures’, where Open Interest fell by 0.60% with Nifty rising by 0.09%. On Friday Nifty future closed with the discount 4.95 points compared to premium of 17.40 points.

* Marginal Short build up was seen in Bank Nifty Futures’ where Open Interest rose by 0.64% with Bank Nifty falling by 0.23%

* Nifty Open Interest Put Call Ratio rose to 1.27 levels from 1.17 levels. Amongst the Nifty options (16-Sep Expiry), Put writing was seen at 17300 levels, Indicating Nifty is likely to find support in the vicinity of 17200-17300 levels. On the higher side, an immediate resistance is seen in the vicinity of 17400 - 17500 levels where we have seen Call writing.

* Unwinding was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 1517 Cr with their Open Interest going down by 1721 contracts.

To Sum It Up, marginal unwinding in the Nifty, marginal short built up in the Bank Nifty Futures, Call writing at 17400 - 17500 levels and long unwinding by FIIs in the Index futures segment Indicates that one should be cautious for the markets.

Therefore, our advise is to use any rally to prune long positions and wait for Nifty to close above 17500 levels for building aggressive long positions. On the lower side 17300 level will act as an immediate support where Puts have been written.

In the Bank Nifty, our advice is to hold longs with the strict stop loss of 36200 levels.

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