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F&O HIGHLIGHTS

LONG UNWINDING IS SEEN IN THE NIFTY & BANK NIFTY FUTURES

GO LONG IN NIFTY ONLY ABOVE 15900 LEVELS

* Nifty May future opened on a strong note on Friday, but erased gains during the last hour of trade to end on a weak note where it fell by 25 points or 0.16% to close at 15782.15 levels.

* Long unwinding is seen in the Nifty Futures where Open Interest fell by 5.9% with Nifty falling by 0.16%.

* Long unwinding is also seen in the Bank Nifty Futures where Open Interest fell by 3.9% with Bank Nifty falling by 1.23%.

* Nifty Open Interest Put Call ratio rose to 0.73 level from 0.63 levels. Amongst the Nifty options (19-May Expiry), Put writing is seen at 15700-15600 levels, Indicating Nifty is likely to find strong support in the vicinity of 15700 – 15600 levels. On the higher side, an immediate resistance is seen in the vicinity of 15900-16000 levels where we have seen call writing.

* Short covering is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 2859 Cr with their Open Interest going down by 17899 contracts.

To Sum It up, rise in PCR on the back of Put writing at 15700-15600 levels, Short covering by FII’s in the Index future segment and long build in Stock futures Indicates that we may see pull back rally from hereon.

Therefore for traders our advise is to create fresh longs If Nifty sustains above 15900 level with SL of 15700 levels. On the higher side 16000-16100 level will act as an immediate resistance where we have seen Calls writing.

In the Bank Nifty, where we have seen long unwinding, our advice is to remain cautious till Bank Nifty closes above 33400 levels. On the higher side resistance is seen around 34100 levels.

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