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Nifty fell more than 100 points from the intraday high on the back of negative Asian and European market cues - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE BANK NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 15900; SUPPORT SEEN AROUND 15700

* Nifty fell more than 100 points from the intraday high on the back of negative Asian and European market cues and finally ended the day with the losses of 15 points to close at 15763 levels.

*  Short build up was seen in Nifty Futures’ at higher levels, where Open Interest rose by 8% with Nifty falling by 0.1%

* Short build up was seen in Bank Nifty Futures’ too where Open Interest rose by 7% with Bank Nifty falling by 0.3%

* Nifty Open Interest Put Call Ratio fell to 1.09 levels from 1.16 levels. Amongst the Nifty options (05-August Expiry), Put writing was seen at 15700 levels, Indicating Nifty is likely to find support in the vicinity of 15700-15750 levels. On the higher side, an immediate resistance is seen in the vicinity of 15850-15900 levels where we have seen Call writing.

* Long unwinding was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 1884 Cr with their Open Interest going down by 7419 contracts.

To Sum It Up, Short build up in the Nifty and Bank Nifty Futures, Call writing at 15800-15900 levels and long unwinding 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 15900 levels for building aggressive long positions. On the lower side 15700-15750 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 35000 levels. On the lower side, support is seen in the vicinity of 34200-34500 levels.

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