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Nifty Open Interest Put Call Ratio fell to 1.15 levels from 1.21 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY FUTURES

HOLD LONG POSITION TILL NIFTY CLOSES BELOW 16400; RESISTANCE SEEN AROUND 16700​​​​​​​

* Nifty ended on a positive note with the gain of 45.95 points on the back of strong global cues to close at 16496.45.

* Minor long build up was seen in Nifty Futures’, where Open Interest rose by 0.37% with Nifty rising by 0.28%

* Short covering was seen in Bank Nifty Futures’ where Open Interest fell by 7% with Bank Nifty rising by 0.3%

* Nifty Open Interest Put Call Ratio fell to 1.15 levels from 1.21 levels. Amongst the Nifty options (26-August Expiry), Call writing was seen at 16500 levels, Indicating Nifty is likely to find resistance in the vicinity of 16500-16600 levels. On the lower side, an immediate support is seen in the vicinity of 16400-16300 levels where we have seen Put writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 310 Cr with their Open Interest going down by 4417 contracts.

To Sum It Up, long build up in the Nifty futures, Short covering in Bank Nifty Futures and short covering by FIIs in the Index futures segment Indicates that one should remain bullish for the markets.

Therefore, our advise is remain bullish with the strict SL of 16400 levels. On the higher side resistance is seen around 16500-16600 levels where Calls have been written

In the Bank Nifty our advice is to remain bullish with the stop loss of 34800 levels. On the higher side, resistance is seen in the vicinity of 35400-35700 levels

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