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F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE BANK NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 17400 LEVELS

* Nifty fell sharply on the back of a weak global cues, mainly on the back of selling pressure in Banking, Metal and Pharma stocks, where it fell by 221 points or 1.27% to close at 17172 levels.

* Long unwinding is seen in the Nifty Futures where Open Interest fell by 3% with Nifty falling by 1.27%.

* Short build up is seen in the Bank Nifty Futures where Open Interest rose by 8% with Bank Nifty falling by 2.10%.

* Nifty Open Interest Put Call ratio fell to an oversold level of 0.91 level from 1.14 levels. Amongst the Nifty options (28-April Expiry), Call writing is seen at 17300-17400 levels, Indicating Nifty is likely to find strong resistance in the vicinity of 17300 - 17400 levels. On the lower side, an immediate support is seen in the vicinity of 16900-17000 levels where we have seen Put writing .

* Long unwinding is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 941 Cr with their Open Interest going down by 915 contracts. To Sum It up, Short build up in the Bank Nifty Futures, long unwinding in the Nifty Futures and Call writing at 17300-17400 levels Indicates that one should remain cautious for the markets.

Therefore our advise is to remain bearish till Nifty closes above 17400 levels. On the lower side 16900-17000 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 36400 levels. On the downside support is seen in the vicinity of 35300-35500 levels

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