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Nifty witnessed huge selling during second half of the trading session finally ended 1% lower to close at 14496.50- HDFC Securities

F&O HIGHLIGHTS

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

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 14700 LEVELS

* Nifty witnessed huge selling during second half of the trading session finally ended 1% lower to close at 14496.50

* Short build up is seen in Nifty Futures’ where Open Interest rose by 4% with Nifty falling by 1%

* Short build is also seen in the Bank Nifty Futures, where we have seen 2% rise in the Open Interest with Bank Nifty falling by 0.6%.

* Nifty Open Interest Put Call Ratio fell to 0.92 levels from 1.07 levels. Amongst the Nifty options (06-May Expiry), Call writing was seen at 14600-14700 levels, Indicating resistance is seen in the vicinity of 14600-14700 level. On the lower side, support is seen in the vicinity of 14300- 14400 levels where we have seen Put writing.

* Long unwinding was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 288 Cr with their Open Interest going down by 5867 contracts.

To Sum It Up, short build up in Nifty and Bank Futures , fall in nifty open interest PCR on the back of call writing at 14600-14700 levels and long unwinding 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 14700 levels. On the lower side 14400-14300 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 33000 levels. On the lower side, support is seen in the vicinity of 31500-31000 levels.

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