IGI Logo

F&O HIGHLIGHTS

LONG UNWINDING IS SEEN IN THE NIFTY AND BANK NIFTY FUTURES

ACCUMULATE LONG POSITIONS ON DECLINE WITH SL OF 17700 LEVELS

* Nifty continued its downward journey for the second day in the row where it fell by 150 points to close at 17808 levels.

* Long unwinding is seen in the Nifty Futures where Open Interest fell by 6% with Nifty falling by 0.83%.

* Long unwinding is seen in the Bank Nifty Futures too where Open Interest fell by 8% with Bank Nifty falling by 1.14%.

* Nifty Open Interest Put Call ratio fell to 0.86 levels from 1.03 levels. Amongst the Nifty options (07-April-Expiry), Put writing is seen at 17700-17800 levels, Indicating Nifty is likely to find strong support around 17700 levels. On the higher side, an immediate resistance is seen in the vicinity of 18000-18100 levels where we have seen Call writing .

* Long unwinding is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 126 Cr with their Open Interest going down by 1953 contracts

To Sum It up, Long unwinding in the Nifty Futures(No short build up), Long unwinding in the Bank Nifty futures and Put writing at 17700-17800 levels Indicates that downside is limited and one should remain optimistic for the markets. Therefore, If Nifty opens sharply lower as SGX Nifty is suggesting, our advise is to accumulate longs with the stop loss of 17700 levels. On the higher side 18000-18100 level will act as a resistance where we have seen Call writing. In the Bank Nifty, our advice is to go longs on decline with Stop loss of 37200 levels. On the higher side 38000-38200 level may act as a resistance

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer