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Nifty Open Interest Put Call Ratio increased to 1.32 levels from 1.17 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY FUTURES

REMAIN BULLISH WITH THE STOP LOSS OF 17100 LEVEL​​​​​​​

* Nifty clocked robust gains on Thursday, amid buying interest in FMCG and IT stocks. The Nifty closed above the 17,200 mark after hitting a record high of 17,245.50 in mid-afternoon trade. Realty shares extended recent gains while PSU banks and auto shares corrected. Investors' risk appetite improved as India continues to administer a record number of daily COVID-19 vaccine doses. Nifty finally closed up by 0.92% at 17234.15 level.

* Long build up was seen in Nifty Futures’, where Open Interest rose by 4.01% with Nifty rising by 0.92%

* Short covering was seen in Bank Nifty Futures’ where Open Interest fell by 3.55% with Bank Nifty rising by 0.82%

* Nifty Open Interest Put Call Ratio increased to 1.32 levels from 1.17 levels. Amongst the Nifty options (9-Sep Expiry), Put writing was seen at 17100 - 17200 levels, Indicating Nifty is likely to find support in the vicinity of 17100 - 17200 levels. On the higher side, an resistance is seen in the vicinity of 17300 - 17500 levels where we have maximum call outstanding.

* Long built-up was seen by FIIS’ in the Stock Futures segment where they net bought worth Rs 462 Cr with their Open Interest going up by 4646 contracts.

To Sum It Up, Long build up in the Nifty Futures, Put writing at 17100-17200 levels and long Built up by FIIs in the Stock futures segment Indicates that one should remain optimistic for the markets.

Therefore, our advise is to create long positions keeping stop loss at 17100 level.

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 37000 - 37500 levels.

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