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Nifty remained in the narrow range of 80 points through out the day and finally ended the day flat at 15923 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE BANK NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 16000 LEVELS

* Nifty remained in the narrow range of 80 points through out the day and finally ended the day flat at 15923 levels.

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

* On the other hand, short build up was seen in Bank Nifty Futures’ where Open Interest rose by 5% with Bank Nifty falling by 0.40%

* Nifty Open Interest Put Call Ratio fell to 1.24 levels from 1.37 levels. Amongst the Nifty options (22-July Expiry), Call writing was seen at 15900-16000 levels, Indicating Nifty is likely to find resistance in the vicinity of 15950-16000 levels. On the lower side, support is seen around 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 1109 Cr with their Open Interest going up by 901 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 15900-16000 levels and short build up by the FIIS’ in the Index futures segment Indicates that one should be cautious for the markets.

Therefore, our advise is to remain cautious and wait for Nifty to close above 16000 level for building aggressive long positions. On the lower side 15700-15750 level will act as an immediate support where Puts have been written

In the Bank Nifty, our advice is to remain cautious till it closes above 36000 levels. On the lower side, support is seen in the vicinity of 35200-35500 levels.

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