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Nifty continued its downward journey for the third day - HDFC Securities 

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

REMAIN BEARISH WITH SL OF 15300

* Nifty continued its downward journey for the third day on the trot where it fell by 90 point to close at 15119 levels

* Short build up was seen in Nifty Futures’ where Open Interest rose by 0.3% with Nifty falling by 0.59%

* Short build up was seen in the Bank Nifty Futures, where we have seen 4% rise in the Open Interest with Bank Nifty falling by 0.9%.

* Nifty open Interest fell to 1.12 levels from 1.17 levels. Amongst the Nifty options (18-Feb Expiry), Call writing was seen at 15200-15300 levels, Indicating 15300 level will act as a strong resistance. On the lower side, support is seen around 15000 levels where we have seen Put writing

* Minor short build up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 18 Cr with their Open Interest going up by 7848 contracts.

To Sum It Up, Short build up in the Nifty Futures, Short build up in the Bank Nifty Futures, fall in the Nifty Open Interest Put Call ratio on the back of Call writing at 15200-15300 levels and short build up by the FIIs’ in the Index Futures segment Indicates that one should continue to remain cautious for the markets Therefore, our advise is remain bearish with the stop loss of 15300 levels.

On the lower side 15000 level will act as a support where Puts have been written In the Bank Nifty, our advice is to remain bearish with the stop loss of 37000 levels. On the lower side, support is seen in the vicinity of 36200-36400 levels.

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