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Nifty Open Interest Put Call Ratio fell to 1.32 levels from 1.51 level - HDFC Securities

F&O HIGHLIGHTS

MINOR SHORT BUILD UP WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

Expecting sideways move for few sessions

* The Nifty ended almost flat after a volatile session on Tuesday. While selling was wide spread, most IT and pharma stocks managed to end in the green. Adani Group stocks were in demand. Nifty finally closed marginally down by 0.05% at 15584.85 level.

* Minor short build up was seen in Nifty Futures’ where Open Interest rose by 1.72% with Nifty falling by 0.64%. Nifty Futures expanded to 43.30 points from 0.40 points.

* Minor short build was seen in the Bank Nifty Futures too, where we have seen 1.14% rise in the Open Interest with Bank Nifty falling by 0.37%.

* Nifty Open Interest Put Call Ratio fell to 1.32 levels from 1.51 level. Amongst the Nifty options (03-June Expiry), Put writing was seen at 15500-15600 levels, Indicating support is seen around 15500 level. On the higher side, resistance is seen in the vicinity of 15600-15700 levels where we have seen Call writing.

To Sum It Up, minor short build up in Nifty futures and the Bank Nifty Futures, & fall in the PCR on the Call writing at 15600-15700 levels Indicates that one should continue to remain cautious for the markets.

Therefore, our advise is to remain caesious with the stop loss of 15600 level. On the lower side 15500 level will act as an immediate support where Calls have been written.

In the Bank Nifty, our advice is to remain bearish with SL of 35800 level. On the lower side, support is seen in the vicinity of 35000 level.

Overall Markets will remains sideways for few sessions where traders can create short positions on the rise and create long positions on the dip.

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