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F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE NIFTY & BANK NIFTY FUTURES

GO LONG IN NIFTY ONLY ABOVE 16200 LEVELS

* Nifty May future witnessed sharp selling pressure through out the day mainly on the back of sell off in Technology stocks, where it fell by 430.90 points or 2.65% to close at 15809.40 levels.

* Short build up is seen in the Nifty Futures where Open Interest rose by 7.99% with Nifty falling by 2.26%.

* Minor short build up is seen in the Bank Nifty Futures too, where Open Interest rose by 0.02% with Bank Nifty falling by 2.48%.

* Nifty Open Interest Put Call ratio fell to 0.80 level from 1.09 levels. Amongst the Nifty options (26-May Expiry), Call writing is seen at 16000-16100 levels, Indicating Nifty is likely to find strong resistance in the vicinity of 16000 - 16100 levels. On the lower side, an immediate support is seen in the vicinity of 15900-15800 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 921 Cr with their Open Interest going up by 18298 contracts.

To Sum It up, Short build up in the Nifty & Bank Nifty Futures, Call writing at 16000-16100 levels and short build up by FII’s in the index futures segment Indicates that one should remain cautious for the markets.

Therefore for traders our advise is to create fresh longs If Nifty sustains above 16200 level with SL of 15900 levels. On the lower side 15800-15700 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 cautious till Bank Nifty closes above 33900 levels. On the downside support is seen around 33000 levels.

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