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

F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE BANK NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 16700; SUPPORT SEEN AROUND 16300​​​​​​​

* Nifty fell more than 100 points from the intraday high on the back of negative global market cues and finally ended the day with the losses of 45.75 points to close at 16568.85 levels.

* Long unwinding was seen in Nifty Futures’ at higher levels, where Open Interest fell 2% with Nifty falling by 0.28%

* Short build up was seen in Bank Nifty Futures’ where Open Interest rose by 7% with Bank Nifty falling by 0.87%

* Nifty Open Interest Put Call Ratio fell sharply to 1.29 levels from 1.67 levels. Amongst the Nifty options (26-August Expiry), Put writing was seen at 16200 levels, Indicating Nifty is likely to find support in the vicinity of 16300-16200 levels. On the higher side, an immediate resistance is seen in the vicinity of 16500-16600 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 41 Cr with their Open Interest going up by 14062 contracts.

To Sum It Up, long unwinding in the Nifty futures, short build up in the Bank Nifty Futures, Call writing at 16500-16600 levels 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 remain cautious and wait for Nifty to close above 16600 levels for building aggressive long positions. On the lower side 16300-16200 level will act as an immediate support where Puts have been written.

In the Bank Nifty, our advice is to remain bearish with the stop loss of 35700 levels. On the lower side, support is seen in the vicinity of 35300-35000 levels.

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