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Nifty Open Interest Put Call Ratio fell to 1.12 levels from 1.30 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 15900 LEVELS

* Nifty continued its downward journey for the fourth days on the trot where it fell by 42 points to close at 15680 levels.

* Minor Short build up was seen in Nifty Futures’ where Open Interest rose by 0.37% with Nifty falling by 0.26%.

* On the other hand, Long unwinding was seen in the Bank Nifty Futures, where we have seen 4% fall in the Open Interest with Bank Nifty falling by 0.25%.

* Nifty Open Interest Put Call Ratio fell to 1.12 levels from 1.30 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 build up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 294 Cr with their Open Interest going up by 7217 contracts.

To Sum It Up, short build up in Nifty futures, Long unwinding in the Bank Nifty Futures, Call writing at 15800-15900 levels and short build up by FIIs’ in the Index Futures segment Indicates that one should remain cautious for the markets.

Therefore, our advise is to remain cautious and wait for Nifty to cross 15900 levels for going long aggressively. On the lower side 15600-15700 level will act as an immediate support where Puts have been written

In the Bank Nifty, our advice is to remain cautious till it closes above 35000 levels. On the lower side, support is seen in the vicinity of 34500-34700 levels.

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