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F&O HIGHLIGHTS

SHORT BUILDUP IS SEEN IN THE NIFTY & BANK NIFTY FUTURES

CREATE SHORT POSITION NEAR 16900 LEVELS WITH THE STOPLOSS OF 17000

* Nifty May future fell sharply on the back of unscheduled repo rate hike by central bank and finally ended the day with the losses of 396 points to close at 16702.50 levels.

* Short build up is seen in the Nifty Futures where Open Interest rose by 17% with Nifty falling by 2.3%.

* Short build up is also seen in the Bank Nifty Futures where Open Interest rose by 13.7% with Bank Nifty falling by 2.5%.

* Nifty Open Interest Put Call fell to 0.65 levels. Amongst the Nifty options (05-May Expiry), Call writing is seen at 16900-17000 levels, Indicating Nifty is likely to find strong resistance in the vicinity of 16900 - 17000 levels. On the lower side, an immediate support is seen in the vicinity of 16500-16400 levels where we have seen Put writing .

* Short build up is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 3233 Cr with their Open Interest going up by 34865 contracts. To Sum It up, Short build up in the Nifty and Bank nifty futures, Fall in the Nifty Open Interest Put Call ratio on the back of Call writing at 16900-17000 levels and short build up by FII’s in the index and stock futures segment Indicates that one should remain cautious for the markets.

Therefore for traders our advise is to create short position near 16900 levels, as SGX is trading higher, with the stop loss of 17000. On the lower side 16500-16400 level will act as an immediate support where we have seen Put writing. In the Bank Nifty, where we have seen short build up, our advice is to remain bearish till Bank Nifty trades above 35500 levels. On the upside support is seen around 35100 levels

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