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Nifty Open Interest Put Call Ratio fell to 1.07 levels from 1.12 levels -  HDFC Securities

F&O HIGHLIGHTS

UNWINDING WAS SEEN IN THE NIFTY FUTURES

REMAIN BEARISH WITH THE TRAILING STOP LOSS OF 15800 LEVELS

* Market ended a volatile session with modest losses on Thursday. The Nifty ended below the 15,700 mark. Barring the IT and FMCG index, all the sectoral indices on the NSE ended in the red. Nifty closed at 15691.40 level down by 0.48%

* Unwinding was seen in Nifty Futures’ where Open Interest fell by 4.63% with Nifty falling by 0.48%. Nifty basis has fallen to 0.75 from 22.65 level.

* Short build was seen in the Bank Nifty Futures, where we have seen 6.59% rise in the Open Interest with Bank Nifty falling by 1.37%.

* Nifty Open Interest Put Call Ratio fell to 1.07 levels from 1.12 levels. Amongst the Nifty options (24-June Expiry), Call writing was seen at 15700 -15800 levels, Indicating resistance is seen around 15800 levels. On the lower side, support is seen in the vicinity of 15500-15600 levels where we have seen maximum Put OI.

To Sum It Up, Unwinding in Nifty futures, Short build up in the Bank Nifty Futures & Call writing at 15700-15800 levels Indicates that one should remain bearish for the markets.

Therefore, our advise is to remain bearish with the trailing stop loss of 15800 levels. On the lower side 15500-15600 level will act as an immediate support where we have seen maximum OI in the Puts

In the Bank Nifty, our advice is to sell on rise with SL of 35000 levels. On the lower side, support is seen in the vicinity of 34500 - 34000 levels.

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