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Nifty witnessed a gap down opening of more than 100 points on the back of weak global cues- HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 14950 LEVELS

* Nifty witnessed a gap down opening of more than 100 points on the back of weak global cues. However from the low, it recovered more than 80 points and finally ended the day with the losses of 92 points to close at 14851 levels.

* Short build up is seen in Nifty Futures’ where Open Interest rose by 4% with Nifty falling by 0.60%.

* On the other hand, long unwinding is seen in the Bank Nifty Futures, where we have seen 15% fall in the Open Interest with Bank Nifty falling by 0.8%.

* Nifty Open Interest Put Call Ratio fell to 1.27 levels from 1.33 levels . Amongst the Nifty options (12-May Expiry), Call writing was seen at 14950-15000 levels, Indicating resistance is seen in the vicinity of 14950-15000 level. On the lower side, support is seen in the vicinity of 14700- 14800 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 2220 Cr with their Open Interest going up by 9992 contracts.

To Sum It Up, short build up in Nifty Futures, long unwinding in the Bank Nifty Futures, Call writing seen at 14950-15000 levels and short build up by FIIs’ in the Index Futures segment Indicates that one should be cautious for the markets.

Therefore, our advise is to remain cautious with the stop loss of 14950 levels. On the lower side 14700-14800 level will act as an immediate support where Puts have been written

In the Bank Nifty, our advice is to remain bearish with the stop loss of 33300 levels. On the lower side, support is seen in the vicinity of 32400-32600 levels.

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