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Nifty Open Interest Put Call ratio remained steady at 0.82 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE BANK NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 17950 LEVELS

* Nifty broke the four day losing streak on Monday where it rose more than 150 points from the intraday low and ended the day with the gains of 11 points to close at 18125 levels.

* Minor Long build up is seen in the Nifty Futures where Open Interest rose by 1% with Nifty rising by 0.06%.

* Long build up is seen in the Bank Nifty Futures too where Open Interest rose by 12% with Bank Nifty rising by 2%.

* Nifty Open Interest Put Call ratio remained steady at 0.82 levels. Amongst the Nifty options (28-Oct Expiry), Put writing is seen at 18000 levels, Indicating Nifty is likely to find support in the vicinity of 17950 - 18000 levels. On the higher side, an immediate resistance is seen in the vicinity of 18200 - 18300 levels where we have seen Call writing.

* Short build up is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 808 Cr with their Open Interest going up by 8751 contracts.

To Sum It up, Long build up in the Nifty futures, Long build up in the Bank Nifty Futures and Put writing at 18000 levels Indicates that Indicates that one should be optimistic for the markets.

Therefore, our advise is to accumulate longs with the stop loss of 17950 levels. On the higher side 18200-18300 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long with trailing SL of 40500 levels. On the higher side 41500-41800 level may act as resistance going forward.

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