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The Nifty hit a day's low of 16,909.60 in morning trade after opening above the 17,100 mark -  HDFC Securities

F&O HIGHLIGHTS

LONG UNWINDING IS SEEN IN THE BANK NIFTY FUTURES

ACCUMULATE LONGS ON DECLINE WITH THE STOP LOSS OF 16800 LEVELS​​​​​​​

* The Nifty hit a day's low of 16,909.60 in morning trade after opening above the 17,100 mark. The index trimmed some losses and managed to close near the 17,000 mark. Nifty Finally closed down by 68.85 points at 17003.75.

* Short built up of was seen in the Nifty Futures where Open Interest rose by 2.82% with Nifty falling by 0.40%.

* Long unwinding of positions was seen in the Bank Nifty Futures where Open Interest fell by 0.19% with Bank Nifty falling by 0.95%.

* Nifty Open Interest Put Call ratio fell to 1 from 1.11 level. Amongst the Nifty options (30-Dec Expiry), Put writing is seen at 16900 levels, Indicating Nifty is likely to find support in the vicinity of 16800 - 16900 levels. On the higher side, an immediate resistance are seen in the vicinity of 17200 - 17300 levels where we have seen Call writing.

* Long unwinding was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 70 Cr with their Open Interest going down by 1400 contracts.

To Sum It up, Short built up in the Nifty futures, Long unwinding in the Bank Nifty Futures and Call writing at 17200 levels Indicates that Indicates that one should be bearish up to 16800 - 16900 levels and from that level traders can create long positions.

Therefore, our advise is to accumulate longs on dips with the stop loss of 16800 levels. On the higher side 17000 - 17100 levels will act as a strong resistance.

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