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Nifty Open Interest Put Call Ratio fell to 0.99 levels from 1.20 levels - HDFC Securities

F&O HIGHLIGHTS

UNWINDING WAS SEEN IN THE NIFTY FUTURES

REMAIN BULLISH WITH TRAILING STOP LOSS OF 15600 LEVEL

* Nifty ended with modest losses on Monday. PSU banks, pharma and metals stocks were in demand while IT stocks corrected. Nifty finally closed down by 0.29% at 15814.70 level.

* Unwinding was seen in Nifty Futures’ where Open Interest fell by 1.24% with Nifty falling by 0.29%.

* Long build was seen in the Bank Nifty Futures, where we have seen 2.50% rise in the Open Interest with Bank Nifty marginally falling by 0.01%.

* Nifty Open Interest Put Call Ratio fell to 0.99 levels from 1.20 levels. Amongst the Nifty options (01-July Expiry), Put writing was seen at 15600-15700 levels, Indicating support is seen around 15600 levels. On the higher side, resistance is seen in the vicinity of 15900-16000 levels where we have seen Call writing.

To Sum It Up, unwinding seen in Nifty futures(No fresh short build up), Long build up in the Bank Nifty Futures & Put writing at 15500-15700 levels Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to remain bullish but buy on decline with the trailing stop loss of 15600 levels. On the higher side 15900-16000 levels 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 35000 levels. On the higher side, resistance is seen in the vicinity of 35500-36000 levels.

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