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Nifty Open Interest Put Call Ratio fell slightly to 1.28 levels from 1.30 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY AND BANK NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 17800 LEVELS

* Nifty continued its upward journey for the fourth day in the row where it gained by 46 points to close at all time high level at 17992 levels

* Long build up is seen in the Nifty Futures where Open Interest rose by 2% with Nifty rising by 0.26%.

* Long build up is seen in Bank Nifty Futures’ too where Open Interest rose by 5% with Bank Nifty rising by 0.59%.

* Nifty Open Interest Put Call Ratio fell slightly to 1.28 levels from 1.30 levels. Amongst the Nifty options (14-Oct Expiry), Put writing was seen at 17800-17900 levels, Indicating Nifty is likely to find support in the vicinity of 17800 - 17900 levels. On the higher side, an immediate resistance is seen in the vicinity of 18000 - 18100 levels where we have seen Call writing.

* Long unwinding is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 1199 Cr with their Open Interest going down by 3963 contracts.

To Sum It up, Long build up in the both Nifty and Bank Nifty futures and Put writing at 17800 - 17900 levels Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to accumulate long positions with trailing SL of 17800 level. On the higher side 18000-18100 levels will act as a resistance.

In the Bank Nifty, our advice is to go long with SL of 38200 levels. On the higher side 39000-39500 level may act as resistance going forward

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