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Nifty fell more than 200 points from the high and finally ended the day near days low at 17646 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE NIFTY FUTURES

REMAIN BULLISH WITH THE STOP LOSS OF 17500 LEVELS

* Nifty fell more than 200 points from the high and finally ended the day near days low at 17646 levels.

* Short build up is seen in the Nifty Futures at higher levels where Open Interest rose by 7% with Nifty falling by 0.99%

* Minor short build up is seen in Bank Nifty Futures’ too where Open Interest rose by 1% with Bank Nifty falling by 0.58%.

* Nifty Open Interest Put Call Ratio fell sharply to an oversold level of 0.84 levels from 1.20 levels. Amongst the Nifty options (07-Oct Expiry), Put writing was seen at 17500-17600 levels, Indicating Nifty is likely to find support around 17500 levels. On the higher side, an immediate resistance is seen in the vicinity of 17700 - 17800 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 244 Cr with their Open Interest going up by 1699 contracts.

To Sum It Up, Short build up in the Nifty futures and short build up by FIIs in the Index Futures segment Indicates that one should remain cautious for the markets. However an oversold level of PCR along with the Put writing at 17500 levels Indicates that one should be bearish only below 17500 levels.

Therefore, our advise is to accumulate long positions with trailing SL of 17500 level. On the higher side 17700-17800 levels will act as a resistance.

In the Bank Nifty, our advice is to accumulate longs with the Stop loss of 37300 levels

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