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Nifty broke the four day winning streak on the back of weak global cues and lockdown related fears where it fell by 264 points - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 14800 LEVELS​​​​​​​

* Nifty broke the four day winning streak on the back of weak global cues and lockdown related fears where it fell by 264 points to close at 14631 levels.

* Short build up is seen in Nifty Futures’ where Open Interest rose by 6% with Nifty falling by 1.77%.

* On the other hand, long unwinding is seen in the Bank Nifty Futures, where we have seen 3% fall in the Open Interest with Bank Nifty falling by 2.80%.

* Nifty Open Interest Put Call Ratio fell sharply to 1.07 levels from 1.43 levels. Amongst the Nifty options (06-May Expiry), Call writing was seen at 14800-14900 levels, Indicating resistance is seen in the vicinity of 14800-14900 level. On the lower side, support is seen in the vicinity of 14400-14500 levels where we have seen Put writing.

* Short build up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 2963 Cr with their Open Interest going up by 11303 contracts.

To Sum It Up, short build up in Nifty Futures, long unwinding in the Bank Nifty Futures, fall in the Nifty Open Interest Put Call ratio on the back of Call writing at 14800-14900 levels and massive short build up by FIIs’ in the Index Futures segment Indicates that one should be cautious for the markets. Therefore, our advise is to remain cautious with the stop loss of 14800 levels. On the lower side 14400-14500 level will act as an immediate support where Puts have been written In the Bank Nifty, our advice is to remain cautious with the stop loss of 33500 levels. On the lower side, support is seen in the vicinity of 31500-32000 levels.

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