IGI Logo

The Nifty Futures where Open Interest rose by 3.64% with Nifty falling by 1.04% - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE NIFTY AND BANK NIFTY FUTURES

ACCUMULATE SHORT AND EXIT NEAR 17500 LEVEL

* The Nifty tumbled on Friday, extending losses for the third trading session. Private banks and IT shares declined while PSU banks and pharma shares climbed. Nifty ended the day with the loss of 185 points to close at 17671 levels.

* Short build up was seen in the Nifty Futures where Open Interest rose by 3.64% with Nifty falling by 1.04%.

* Shor build up was seen in the Bank Nifty Futures too where Open Interest rose by 5.63% with Bank Nifty falling by 1%.

* Nifty Open Interest Put Call ratio felled at 0.72 levels from 0.82 levels. PCR is heading towards oversold zone level of 0.65 level. Amongst the Nifty options (3-Nov Expiry), Put writing was seen at 17500 levels, Indicating Nifty is likely to find support in the vicinity of 17500 – 17600 levels. On the higher side, an immediate resistance is seen in the vicinity of 17800 - 17900 levels where we have seen Call writing.

* long build up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 690 Cr with their Open Interest going up by 10972 contracts

To Sum It up, Short build up in the Nifty futures, Short build up in the Bank Nifty Futures and Call writing at 17800 - 17900 levels Indicatesthat one should be cautious on the markets.

Therefore, our advise is to create short positions at current level and exit from short positions near 17500 level.

In the Bank Nifty, our advice is to go short with trailing SL of 40000 levels. On the lower side 38500 - 39000 level may act as a strong support going forward.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer