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Nifty fell sharply on Thursday on the back of weak global cues and ended the day with the losses of 152 points - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 15800 LEVELS​​​​​​​

* Nifty fell sharply on Thursday on the back of weak global cues and ended the day with the losses of 152 points to close at 15728 levels.

* Short build up was seen in Nifty Futures’ where Open Interest rose by 5% with Nifty falling by 0.96%. 

* Short build up was seen in the Bank Nifty Futures too, where we have seen 4% rise in the Open Interest with Bank Nifty falling by 1.4%.

* Nifty Open Interest Put Call Ratio fell sharply to 0.91 levels from 1.25 levels. Amongst the Nifty options (15-July Expiry), Call writing was seen at 15800-15900 levels, Indicating Nifty is likely to find resistance in the vicinity of 15800-15900 levels. On the lower side, support is seen in the vicinity of 15600-15700 levels where we have seen Put writing.

* Short build up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 2938 Cr with their Open Interest going up by 18957 contracts.

To Sum It Up, Short build up in the Nifty and Bank Nifty Futures, Sharp fall in the Put call ratio on the back of Call writing at 15800-15900 levels and aggressive short build up by FIIs’ in the Index Futures and option segment Indicates that one should be cautious for the markets.

Therefore, our advise is to be cautious and wait for Nifty to close above 15800 level for building aggressive long positions. On the lower side 15600-15700 level will act as an immediate support where Puts have been written

In the Bank Nifty, our advice is to remain cautious till Bank Nifty closes above 35800 levels. On the lower side, support is seen in the vicinity of 34600-35000 levels.

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