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Nifty witnessed a huge gap down opening with more than 100 points- HDFC Securities

F&O HIGHLIGHTS

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

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 14900 LEVELS

* Nifty witnessed a huge gap down opening with more than 100 points but managed to recover its losses and ended flat to close at 14634.15.

* Short build up is seen in Nifty Futures’ where Open Interest rose by 4% with Nifty falling by 0.03%.

* Short build is also seen in the Bank Nifty Futures, where we have seen 17% rise in the Open Interest with Bank Nifty falling by 1%.

* Nifty Open Interest Put Call Ratio remained unchanged at 1.07 levels. Amongst the Nifty options (06-May Expiry), Call writing was seen at 14800-14900 levels, Indicating resistance is seen in the vicinity of 14800-14900 level. On the lower side, support is seen in the vicinity of 14400- 14500 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 1916 Cr with their Open Interest going up by 556 contracts.

To Sum It Up, short build up in Nifty and Bank Futures segment, Call writing at 14800-14900 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 14900 levels. On the lower side 14400-14500 level will act as an immediate support where Puts have been written In the Bank Nifty, our advice is to remain cautious with the stop loss of 33500 levels. On the lower side, support is seen in the vicinity of 31500-32000 levels.

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