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Nifty Open Interest Put Call Ratio fell to 0.90 levels from 0.99 levels - HDFC Securities

F&O HIGHLIGHTS

UNWINDING WAS SEEN IN THE NIFTY FUTURES

REMAIN BULLISH WITH TRAILING STOP LOSS OF 15700 LEVEL

* The market ended with modest losses on Tuesday. The Nifty closed a tad below 15,750 mark. Metals, banks, and auto stocks tumbled. FMCG and pharma shares bucked weak market trend. Mixed cues from other Asian stock markets kept sentiment under check. Fears of the third COVID-19 wave also spooked traders.Nifty closed at 15748.45 level down by 0.42%.

* Unwinding was seen in Nifty Futures’ where Open Interest fell by 0.37% with Nifty falling by 0.42%.

* Short build was seen in the Bank Nifty Futures, where we have seen 2.75% rise in the Open Interest with Bank Nifty falling by 0.99%.

* Nifty Open Interest Put Call Ratio fell to 0.90 levels from 0.99 levels. Amongst the Nifty options (01-July Expiry), Put writing was seen at 15500-15700 levels, Indicating support is seen around 15700 levels. On the higher side, resistance is seen in the vicinity of 15800-15900 levels where we have seen Call writing.

To Sum It Up, unwinding in Nifty futures which suggests no short built up, Put writing at 15500- 15700 levels Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to buy on dips by keeping trailing stop loss of 15700 levels. On the higher side 15800-15900 level will act as an immediate resistance where Calls have been written

In the Bank Nifty, our advice is to buy on decline with SL of 34500 levels. On the higher side, resistance is seen in the vicinity of 35500-36000 levels.

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