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Nifty fell almost 100 points from the intraday high on the back of negative Asian cues and finally ended the day with the losses of 56 points  - HDFC Securities

F&O HIGHLIGHTS

MINOR SHORT BUILD UP IS SEEN IN THE NIFTY & BANK NIFTY FUTURES

SUPPORT SEEN AROUND 16100 LEVEL​​​​​​​

* Nifty fell almost 100 points from the intraday high on the back of negative Asian cues and finally ended the day with the losses of 56 points to close at 16238.20 levels.

* Minor short build up was seen in Nifty Futures’ where Open Interest rose by 0.3% with Nifty falling by 0.35%

* Short build up was seen in Bank Nifty Futures’ too where Open Interest rose by 6% with Bank Nifty falling by 0.1%

* Nifty Open Interest Put Call Ratio fell to 1.40 from 1.59 levels. Amongst the Nifty options (12- Aug Expiry), Put writing was seen at 16100 levels, Indicating Nifty is likely to find support in the vicinity of 16100-16000 levels. On the higher side, an immediate resistance is seen in the vicinity of 16300-16400 levels where we have seen Call writing.

* Short build up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 589 Cr with their Open Interest going up by 5757 contracts.

To Sum It Up, Short build up in the Nifty and Bank Nifty Futures and short build up by FIIs in the Index futures segment Indicates that one should remain cautious for the markets.

Therefore, our advise is to use any rally to prune long positions and wait for Nifty to close above 16400 levels for building aggressive long positions. On the lower side 16100-16000 level will act as an immediate support where Puts have been written.

In the Bank Nifty, our advice is to hold long position with the stop loss of 35500 levels. On the higher side, resistance is seen in the vicinity of 36100-36300 levels.

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