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Nifty Open Interest Put Call Ratio fell to 1.18 levels from 1.22 levels -  HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE BANK NIFTY FUTURES

REMAIN BEARISH WITH TRAILING STOP LOSS OF 15800 LEVELS

* After recording steep losses in the intraday, the market bounced back in late trade and ended almost flat on Friday. The Nifty closed above the 15,650 mark after hitting the day's low of 15,450.90 in mid-morning trade. Metal stocks tumbled after China announced plans to release its state reserves of copper, aluminum and zinc to ensure stable prices of commodities. Nifty finally closed 0.05% down at 15683.35 level.

* Unwinding was seen in Nifty Futures’ where Open Interest fell by 7.43% with Nifty falling marginally by 0.05%.

* Short build was seen in the Bank Nifty Futures, where we have seen 5.38% rise in the Open Interest with Bank Nifty falling by 0.18%.

* Nifty Open Interest Put Call Ratio fell to 1.18 levels from 1.22 levels. Amongst the Nifty options (24-June Expiry), Call writing was seen at 15800-16000 levels, Indicating resistance is seen around 15800 levels. On the lower side, support is seen in the vicinity of 15500-15600 levels where we have seen Put writing.

To Sum It Up, Unwinding in Nifty futures, Short built up in the Bank Nifty futures & Call writing at 15800-16000 levels Indicates that one should continue to remain bearish for the markets.

Therefore, our advise is to remain bearish with the trailing stop loss of 15800 levels. On the lower side 15500-15600 level will act as an immediate support where Puts have been written

In the Bank Nifty, our advice is to remain bearish with the stop loss of 34700 levels. On the lower side, support is seen in the vicinity of 34000-33700 levels.

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