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Nifty Open Interest Put Call Ratio fell to 1.11 level from 1.27 level - HDFC Securities

F&O HIGHLIGHTS

MARGINAL LONG BUILD UP IS SEEN IN THE NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 17700 LEVELS​​​​​​​

* Nifty ended almost flat after a volatile session on Monday. After a strong opening, the barometers tumbled in the mid-morning trade. Indices bounced in the afternoon, but failed to hold gains and settled near flat line. Asian cues were mixed amid concerns over the Evergrande crisis and rising yields.Nifty finally ended the day almost flat at 17855.10.

* Marginal Long build up was seen in the Nifty Futures where Open Interest rose by 0.78% with Nifty rising by 0.01%.

* On the other hand, Unwinding was seen in Bank Nifty Futures’ where Open Interest fell by 2.26% with Bank Nifty rising by 0.90%.

* Nifty Open Interest Put Call Ratio fell to 1.11 level from 1.27 level. Amongst the Nifty options (30-Sep Expiry), Put writing was seen at 17700-17800 levels, Indicating Nifty is likely to find support in the vicinity of 17700 - 17800 levels. On the higherside, an immediate resistance is seen in the vicinity of 17900 - 18000 levels where we have seen Call writing.

* Long built up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 572 Cr with their Open Interest going up by 14936 contracts.

To Sum It Up, Marginal Long build up in the Nifty futures, Long positions built up in Index by FII’s and Put writing at 17700 - 17800 levels Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to accumulate long positions with trailing SL of 17700 level.On the higher side 17900-18000 levels will act as a resistance.

In the Bank Nifty, our advice is to go long by keeping stop loss of 37500 level.

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