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Nifty Open Interest Put Call Ratio fell to 1.09 levels from 1.12 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

REMAIN BULLISH WITH THE STOP LOSS OF 15600 LEVELS

* Nifty broke the four day losing streak on Friday where it gained by 42 points to close at 15722 levels.

* Short covering was seen in Nifty Futures’ where Open Interest fell by 3% with Nifty rising by 0.27%.

* Short covering was seen in the Bank Nifty Futures too, where we have seen 1% fall in the Open Interest with Bank Nifty rising by 0.40%.

* Nifty Open Interest Put Call Ratio fell to 1.09 levels from 1.12 levels. Amongst the Nifty options (08-July Expiry), Call writing was seen at 15800-15900 levels, Indicating resistance is seen around 15900 levels. On the lower side, support is seen in the vicinity of 15600-15700 levels where we have seen Put writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 99 Cr with their Open Interest going down by 11857 contracts.

To Sum It Up, First sign of short covering in the Nifty and Bank Nifty Futures, Put writing at 15600-15700 levels and short covering by FIIs’ in the Index Futures segment Indicates that one should remain optimistic for the markets.

Therefore, our advise is to remain bullish with the stop loss of 15600 levels. On the higher side 15800-15900 level will act as an immediate resistance where Puts have been written

In the Bank Nifty, our advice is to remain optimistic with the stop loss of 34500 levels. On the higher side, resistance is seen in the vicinity of 35200-35500 levels.

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