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F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE BANK NIFTY FUTURES

STRONG SUPPORT IS SEEN AROUND 16000 LEVELS

* Nifty May Futures continued its downward journey for the sixth day on the trot, mainly on the back of selling pressure in Global Markets, where it fell by 72.95 points or 0.45% to close at 16167.10 levels.

* Short build up is seen in the Nifty Futures where Open Interest rose by 1.4% with Nifty falling by 0.45%.

* Long build up is seen in the Bank Nifty Futures where Open Interest rose by 7% with Bank Nifty rising by 0.61%.

* Nifty Open Interest Put Call ratio fell to an oversold level of 0.69 level from 0.76 levels. Amongst the Nifty options (12-May Expiry), Call writing is seen at 16200-16300 levels, Indicating Nifty is likely to find strong resistance in the vicinity of 16200 - 16300 levels. On the lower side, an immediate support is seen in the vicinity of 15900-16000 levels where we have seen Put writing .

* Short build is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 966 Cr with their Open Interest going up by 12080 contracts.

To Sum It up, Short build up in the Nifty Futures, Call writing at 16200-16300 levels and short build by FIIS in the Index Futures segment Indicates that one should remain cautious for the markets. However considering the oversold level of Put Call ratio and long build up in Bank Nifty Futures Indicates that down side is limited

Therefore for traders our advise is to create fresh longs If Nifty sustains above 16200 level with SL of 16000 levels. On the lower side support is seen around 16000 level where we have seen Put writing.

In the Bank Nifty, where we have seen long build up, our advice is to remain bullish with the stop loss of 34100. On the upside resistance is seen around 35000 levels.

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