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Nifty Open Interest Put Call Ratio fell to 1.35 levels from 1.42 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY FUTURES

REMAIN BULLISH IN THE NIFTY BY KEEPING STOP LOSS AT 17200 LEVEL

* Nifty settled with modest gains near record high levels on Friday. The Nifty closed above the crucial 17,300 mark. Media, metal and auto stocks rallied while FMCG, banks and financial shares corrected. Trading was volatile during the session amid mixed global cues but optimism surrounding strong domestic macroeconomic numbers supported sentiment. Nifty finally closed up by 0.52% at 17323.60 level.

* Minor Long build up was seen in Nifty Futures’, where Open Interest rose by 0.89% with Nifty rising by 0.52%

* Short build up was seen in Bank Nifty Futures’ where Open Interest rose by 8.53% with Bank Nifty falling by 0.19%

* Nifty Open Interest Put Call Ratio fell to 1.35 levels from 1.42 levels. Amongst the Nifty options (09- Sep Expiry), Put writing was seen at 17200 levels, Indicating Nifty is likely to find support in the vicinity of 17000 - 17200 levels. On the higher side, an immediate resistance is seen in the vicinity of 17400 - 17500 levels where we have seen Call writing.

To Sum It Up, Long build up in the Nifty & Put writing at 17000 - 17200 levels Indicates that one should remain optimistic for the markets.

Therefore, our advise in Nifty is to create long positions with the stop loss of 17200 levels.

In the Bank Nifty, our advice is to remain bullish with the stop loss of 36500 levels. On the higher side resistance is seen in the vicinity of 37500 - 38000 levels.

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