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Nifty Open Interest Put Call Ratio fell to 1.08 levels from 1.22 levels - HDFC Securities

F&O HIGHLIGHTS

MARGINAL UNWINDING WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

REMAIN BULLISH WITH TRAILING STOP LOSS OF 15700 LEVELS

* The equity indices ended a volatile session with minor gains on Tuesday. After opening above the 15,800 mark, the Nifty hit a high of 15,895.75 in morning trade, but pared gains as the session progressed. A strong bout of profit selling in late trade dragged the 50-unit index below the 15,800 mark. Auto and IT stocks were in demand while realty, banks and FMCG shares declined. Nifty finally closed marginally up by 0.17% at 15772.75 level.

* Minor unwinding was seen in Nifty Futures’ where Open Interest fell marginally by 0.25% with Nifty rising by 0.17%.

* Minor unwinding was seen in the Bank Nifty Futures too, where we have seen 0.85% fall in the Open Interest with Bank Nifty falling by 0.36%.

* Nifty Open Interest Put Call Ratio fell to 1.08 levels from 1.22 levels. Amongst the Nifty options (24-June Expiry), Put writing was seen at 15800 level, Indicating support is seen around 15700 - 15800 levels. On the higher side, resistance is seen in the vicinity of 16000-16100 levels where we have seen Call writing.

To Sum It Up, marginal unwinding seen in Nifty futures & Bank Nifty Futures & Put writing at 15700 levels Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to remain bullish with the trailing stop loss of 15700 levels. On the higher side 16000 - 16100 levels will act as an immediate resistance where Calls have been written

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

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