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Nifty Futures’ where Open Interest fell by 5% with Nifty falling by 1.07%   - HDFC Securities

F&O HIGHLIGHTS

LONG UNWINDING IS SEEN IN THE NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 17500 LEVELS; SUPPORT SEEN IN THE VICINITY OF 17200-17300

* Nifty fell sharply on the back of weak global cues to end the day with the losses of 188 points at 17397 levels.

* Long unwinding is seen in Nifty Futures’, where Open Interest fell by 5% with Nifty falling by 1.07%

* On the other hand, Short build up was seen in Bank Nifty Futures’ where Open Interest rose by 11% with Bank Nifty falling by 1.80%

* Nifty Open Interest Put Call Ratio fell sharply to 0.98 levels from 1.15 levels. Amongst the Nifty options (23-Sep Expiry), Put writing IS seen at 17200-17300 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 17500 - 17600 levels where we have seen Call writing.

* Long unwinding was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 2560 Cr with their Open Interest going down by 4704 contracts.

To Sum It Up, Long unwinding in the Nifty Futures, short build up in the Bank Nifty futures, fall in the Nifty Put call ratio on the back of Call writing at 17500 - 17600 levels and long unwinding by FIIs in the Index futures segment Indicates that one should be cautious for the market till Nifty closes above 17500 levels.

On the other hand, considering the oversold PCR as it has fallen below one and put writing at 17200-17300, we believe that Nifty may find strong support in the vicinity of 17200- 17300 levels.

In the Bank Nifty, where we have seen short build up, our advice is to remain cautious till it closes above 36500 levels. Support is seen in the vicinity of 36800-37000 levels.

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