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Nifty Open Interest Put Call Ratio fell to 1.11 levels from1.29 levels -  HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE BANK NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 14900 LEVELS

* Nifty ended on a flat note on Friday to close at 14677.80

* Long unwinding is seen in Nifty Futures’ where Open Interest fell by 5% with Nifty falling by 0.13%.

* On the other hand Short build was seen in the Bank Nifty Futures, where we have seen 10% rise in the Open Interest with Bank Nifty falling by 0.9%.

* Nifty Open Interest Put Call Ratio fell to 1.11 levels from1.29 levels. Amongst the Nifty options (20-May Expiry), Call writing was seen at 14900-15000 levels, Indicating resistance is seen in the vicinity of 14900-15000 level. On the lower side, support is seen in the vicinity of 14600- 14500 levels where we have seen Put writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 625 Cr with their Open Interest going down by 4061 contracts.

To Sum It Up, short build up in Bank Nifty Futures, Long unwinding in the Nifty Futures, Call writing at 14900-15000 levels and short build up by FIIs’ in the Stock Futures segment Indicates that one should be cautious for the markets.

Therefore, our advise is to remain cautious with the stop loss of 14900 levels. On the lower side 14600-14500 level will act as an immediate support where Puts have been written

In the Bank Nifty, our advice is to remain cautious with the stop loss of 32800 levels. On the lower side, support is seen in the vicinity of 31600-32000 levels.

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