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Nifty snapped their three-day rising streak and ended almost flat after a volatile session on Tuesday - HDFC Securities

F&O HIGHLIGHTS

MINOR UNWINDING SEEN IN THE NIFTY FUTURES

CREATE SHORT POSITIONS IN NIFTY AFTER SOME BOUNCE​​​​​​​

* Nifty snapped their three-day rising streak and ended almost flat after a volatile session on Tuesday. The Nifty closed above the 17,350 mark. IT and realty shares corrected after a recent rally. FMCG and consumer durables stocks weak the market trend. Nifty finally closed marginally down by 0.09% at 17362.10 level.

* Minor unwinding was seen in the Nifty Futures’, where Open Interest fell by 0.04% with Nifty falling by 0.09%

* Unwinding was seen also in the Bank Nifty Futures’ where Open Interest fell by 9.51% with Bank Nifty falling by 0.34%

* Nifty Open Interest Put Call Ratio fell to 1.20 levels from 1.29 levels. Amongst the Nifty options (09-Sep Expiry), Put writing was seen at 17300 levels, Indicating Nifty is likely to find support in the vicinity of 17300-17200 levels. On the higher side, an immediate resistance is seen in the vicinity of 17400-17500 levels where we have seen Call writing.

* Short covering up was seen by FIIS’ in the Index Futures segment where they net bough worth Rs 433 Cr with their Open Interest going down by 12990 contracts.

To Sum It Up, unwinding the Nifty Future’s & Bank Nifty future’s & Call writing at 17400 - 17500 levels Indicates that one should remain cautious on the markets.

Therefore, our advise is to built fresh short positions after minor bounce by keeping stop loss at 17500 level.

In the Bank Nifty, our advice is to create short positions by keeping stop loss at 36800 level.

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