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Nifty Open Interest Put Call Ratio fell sharply to 1.15 levels from 1.58 levels  - HDFC Securities

F&O HIGHLIGHTS

LONG UNWINDING IS SEEN IN THE NIFTY FUTURES

USE ANY SHARP CORRECTION TO ACCUMULATE LONGS WITH THE STOP LOSS OF 17300 LEVELS

*  Nifty corrected more than 200 points from the intraday high on the back profit booking and finally ended the day with the losses of 44 points to close at 17585 levels.

* Long unwinding was seen in Nifty Futures’, where Open Interest fell by 4% with Nifty falling by 0.25%.

* On the other hand, short covering was seen in Bank Nifty Futures’ where Open Interest fell by 2% with Bank Nifty rising by 0.40%.

* Nifty Open Interest Put Call Ratio fell sharply to 1.15 levels from 1.58 levels. Amongst the Nifty options (23-Sep Expiry), Put writing was seen at 17300-17500 levels, Indicating Nifty is likely to find support in the vicinity of 17300 - 17500 levels. On the higher side, an immediate resistance is seen in the vicinity of 17700 - 17800 levels where we have seen Call writing.

* Long build up was seen by FIIS’ in the Index Futures segment where they net bough worth Rs 2067 Cr with their Open Interest going up by 5651 contracts.

To Sum It Up, Long unwinding in the Nifty futures and no fresh short build up on Friday, short covering in the Bank Nifty futures, Put writing at 17300 - 17500 levels and long build up by FIIs in the Index futures segment, Indicates that downside is limited in the markets

Therefore If Nifty opens sharply lower, as SGX Nifty is suggesting, our advise is to use that decline to accumulate long positions with the stop loss of 17300 levels

In the Bank Nifty, where we have seen short covering, our advice is to accumulate longs on decline with the stop loss of 37000 level.

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