F&O Manual: Market in the red, traders see some more selling ahead

The India equity benchmarks were trading lower on February 22 morning on weak global cues. Barring some pharma names, all sectors were trading in the red. At 10.15 am, the Nifty was down 156 point, or 0.88 percent, at 17,671.

On the options front, unwinding was seen at higher strikes, while call writers were dominant. The level of 17,700 saw most call writing as bears tried to create resistance at that level. On the other hand, 17,600 saw the most put writing.

Bars reflect changes in OI during the day. The red bars show call option OI and the green put option OI.

Ankush Bajaj, a Sebi-registered research analyst and a derivatives trader, said he was bearish on the market as there was scope for more follow-through selling in the Nifty as wells as the Bank Nifty.

Volatility gauge India VIX also surged about 6 percent, taking premium higher.

Adani Enterprises saw short build up, a phenomenon characterised by a rise in open interest but a fall in prices. Aditya Birla Fashion Retail, Adani Ports and Tata Chemicals also saw a short buildup.

Long buildup, which occurs when price and open interest rise in tandem, was seen in Aurobindo Pharma, Voltas, Abbott India and Bajaj Auto.

All sectors were seeing a short buildup, led by infra, telecom and cement segments.

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