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Nifty Open Interest Put Call Ratio fell to 1.20 levels from 1.38 levels -  HDFC Securities

F&O HIGHLIGHTS

LONG UNWINDING WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

BE BARISH ONLY BELOW 14200 LEVELS; RESISTANCE IS SEEN AROUND 14500

* Nifty fell sharply on Monday as record jump in COVID-19 cases and fresh restrictions in many states spooked investors' sentiments. Nifty ended the day with the losses of 258 points to close at 14359 levels

* Long unwinding was seen in Nifty Futures’ where Open Interest fell by 5% with Nifty falling by 1.77%.

* Massive long unwinding was seen in the Bank Nifty Futures, where we have seen 11% fall in the Open Interest with Bank Nifty falling by 2.40%.

* Nifty Open Interest Put Call Ratio fell to 1.20 levels from 1.38 levels. Amongst the Nifty options (22-April Expiry), Call writing was seen at 14400-14500 levels, Indicating 14500 level will act as a strong resistance. On the lower side, an immediate support is seen in the vicinity of 14200- 14300 levels where we have seen Put writing.

* Long unwinding was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 310 Cr with their Open Interest going down by 8567 contracts.

To Sum It Up, Long unwinding in the Nifty and Bank Nifty Futures-no fresh short build up, Put writing at 14200-14300 levels and long build up by FIIs in the stock futures segment Indicates that Nifty may find strong support in the vicinity of 14200-14300 levels

Therefore, our advise is to be create fresh shorts only below 14200 levels. Traders can create fresh longs with the stop loss of 14200 levels. On the higher side 14500 will act as an immediate resistance where calls have been written.

In the Bank Nifty, where we have seen long unwinding, our advice is to be bearish only below 30500 levels. On the higher side, resistance is seen in the vicinity of 31500-32000 levels.

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