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Nifty Open Interest Put Call Ratio improved to 1.30 levels from 1.29 levels  - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY AND BANK NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 17700 LEVELS

* Nifty gained 105 points and closed at all time high at 17895 levels.

* Long build up is seen in the Nifty Futures where Open Interest rose by 4% with Nifty rising by 0.59%.

* Minor long build up is seen in Bank Nifty Futures’ too where Open Interest rose by 2% with Bank Nifty rising by 0.10%. 

* Nifty Open Interest Put Call Ratio improved to 1.30 levels from 1.29 levels. Amongst the Nifty options (14-Oct Expiry), Put writing was seen at 17700-17800 levels, Indicating Nifty is likely to find support in the vicinity of 17700 - 17800 levels. On the higher side, an immediate resistance is seen in the vicinity of 18000 - 18100 levels where we have seen Call writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 22 Cr with their Open Interest going down by 293 contracts.

To Sum It Up, Long build up in the Nifty futures and rise in the Nifty Open Interest Put Call Ratio on the back of Put writing at 17700 - 17800 levels Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to accumulate long positions with trailing SL of 17700 level. On the higher side 18000-18100 levels will act as a resistance.

In the Bank Nifty, our advice is to go long with SL of 37400 levels.

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