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Nifty fell sharply on the back of weak global cues and ended the day with the losses of 171 points to close at 15752 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE BANK NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 15900 LEVELS​​​​​​​

* Nifty fell sharply on the back of weak global cues and ended the day with the losses of 171 points to close at 15752 levels.

* Long unwinding was seen in Nifty Futures’ where Open Interest fell by 2% with Nifty falling by 1.07%

* On the other hand, short build up was seen in Bank Nifty Futures’ where Open Interest rose by 6% with Bank Nifty falling by 1.90%

* Nifty Open Interest Put Call Ratio fell to an oversold level of 0.89 levels from 1.24 levels. Amongst the Nifty options (22-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 around 15600 levels where we have seen Put writing.

* Long unwinding was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 2069 Cr with their Open Interest going down by 12443 contracts.

To Sum It Up, short build up in the Bank Nifty Futures, Long unwinding in the Nifty Futures, fall in the Nifty Open Interest Put Call ratio on the back of Call writing at 15800-15900 levels and long unwinding by the FIIS’ in the Index futures segment Indicates that one should be cautious for the markets.

Therefore, our advise is to remain bearish and wait for Nifty to close above 15900 level for building aggressive long positions. On the lower side 15600-15650 level will act as an immediate support where Puts have been written.

In the Bank Nifty, our advice is to remain bearish with stop loss of 35500 levels. On the lower side, support is seen in the vicinity of 34600-34800 levels.

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