IGI Logo

Nifty Open Interest Put Call Ratio fell to an oversold level of 0.90 from 1.10 levels -  HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 15900; SUPPORT SEEN AROUND 15700

* Nifty fell more than 150 points from the intraday high on the back of negative Asian cues and finally ended the day with the losses of 78 points to close at 15746 levels.

* Minor short build up was seen in Nifty Futures’ where Open Interest rose by 2% with Nifty falling by 0.5%

* Short build up was seen in Bank Nifty Futures’ too where Open Interest rose by 16% with Bank Nifty falling by 0.4%

* Nifty Open Interest Put Call Ratio fell to an oversold level of 0.90 from 1.10 levels. Amongst the Nifty options (29-July Expiry), Put writing was seen at 15700 levels, Indicating Nifty is likely to find support in the vicinity of 15650-15700 levels. On the higher side, an immediate resistance is seen in the vicinity of 15800-15900 levels where we have seen Call writing.

* Short build up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 608 Cr with their Open Interest going up by 13666 contracts.

To Sum It Up, Short build up in the Nifty and Bank Nifty Futures, Call writing at 15800-15900 levels and short build up by FIIs in the Index futures segment 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 15900 levels for building aggressive long positions. On the lower side 15650-15700 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 35200 levels. On the lower side, support is seen in the vicinity of 34300-34500 levels.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer