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Nifty Open Interest Put Call Ratio fell to 1.29 levels from 1.35 levels - HDFC Securities

F&O HIGHLIGHTS

MINOR LONG BUILD UP IS SEEN IN THE NIFTY FUTURES

CREATE LONG AFTER MINOR DIP IN THE NIFTY. MAINTAIN STOP LOSS AT 17200 LEVEL​​​​​​​

* Nifty advanced for the third straight session and attained record closing levels on Monday, supported by firm global stocks. Hopes of continued economic support by the Fed Reserve due to weak US job data and talks of more stimulus in Japan and China boosted global shares. Nifty finally closed up by 0.31% at 17377.80 level.

* Minor long build up was seen in Nifty Futures’, where Open Interest rose by 0.68% with Nifty rising by 0.31%

* Short build up was seen in Bank Nifty Futures’ where Open Interest rose by 3.17% with Bank Nifty falling by 0.46%

* Nifty Open Interest Put Call Ratio fell to 1.29 levels from 1.35 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.

* Long built up was seen by FIIS’ in the Index Futures segment where they net bough worth Rs 347 Cr with their Open Interest going up by 3582 contracts.

To Sum It Up, minor long build up in the Nifty, Put writing at 17300 - 17200 levels and long built up by FIIs in the Index futures segment Indicates that one should remain optimistic for the markets.

Therefore, our advise is to built up fresh long positions after minor correction with stop loss of 17200 level.

In the Bank Nifty, our advice is to remain long until Bank Nifty holds 36400 level.

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