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Nifty Open Interest Put Call Ratio fell to 1.17 levels from 1.20 levels - HDFC Securities

F&O HIGHLIGHTS

MARGINAL UNWINDING WAS SEEN IN NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 17500; SUPPORT SEEN AROUND 17300​​​​​​​

* Nifty ended flat after a volatile trade on Tuesday, tracking negative global cues. The Nifty managed to close above 17,350 level after hitting the day's low of 17,254.20 in afternoon trade. Banks and financial stocks were in demand while IT, auto and pharma shares declined. Nifty finally closed marginally down by 0.05% at 17353.50 level.

* Marginal Unwinding was seen in Nifty Futures’, where Open Interest fell by 0.61% with Nifty falling by 0.05%

* Short covering was seen in Bank Nifty Futures’ where Open Interest fell by 1.26% with Bank Nifty rising by 0.82%

* Nifty Open Interest Put Call Ratio fell to 1.17 levels from 1.20 levels. Amongst the Nifty options (09-Sep Expiry), Put writing was seen at 17300 levels, Indicating Nifty is likely to find support in the vicinity of 17300 - 17200 levels. On the higher side, an immediate resistance is seen in the vicinity of 17400 - 17500 levels where we have seen Call writing.

* Marginal Long built-up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 44 Cr with their Open Interest going up by 1224 contracts.

To Sum It Up, unwinding in the Nifty Futures & Call writing at 17400-17500 levels Indicates that one should remain cautious for the markets.

Therefore, our advise is to use any rally to prune long positions and wait for Nifty to close above 17500 levels for building aggressive long positions. On the lower side 17200 - 17300 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 37000 levels.

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