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LONG UNWINDING WAS SEEN IN THE NIFTY - HDFC Securities 

F&O HIGHLIGHTS

CREAT SHORT POSITION WITH SL OF 15200

* Nifty fell more than 150 points from the high and finally ended the day with the losses of 164 points to close at 15080.75 levels

* Long unwinding was seen in Nifty Futures’ where Open Interest fell by 1.3% with Nifty falling by 1.08%.

* A Short build up was seen in the Bank Nifty Futures, where we have seen 9% rise in the Open Interest with Bank Nifty falling by 1.5%.

* Nifty Open Interest Put Call Ratio fell to 1.23 levels from 1.44 levels. Amongst the Nifty options (10-Mar Expiry), Call writing was seen 15200 levels, Indicating 15100-15200 level will act as a resistance. On the lower side, support is seen around 14800 levels where we have seen Put writing.

* The Short build up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 2265 Cr with their Open Interest going up by 12901 contracts. To Sum It Up, Long unwinding in the Nifty Futures and massive Short build up in the Bank Nifty Futures , Call writing at 15100-15200 levels and Short build up by the FIIs’ in the Index Futures segment Indicates that one should remain cautious for the markets.

Therefore, our advise is Create short positions on the rise with stop loss of 15200 level. On the lower side support is seen in at 14800 levels where Puts have been written. In the Bank Nifty, Where we have seen short build up, our advice is to create short position with the stop loss of 36300. On the lower side support is seen at 34900-34600.

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