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Nifty Open Interest Put Call Ratio remained steady at 0.94 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE BANK NIFTY FUTURES

ACCUMULATE SHORTS WITH THE STOP LOSS OF 17800 LEVELS

* Nifty ended with modest losses on Wednesday, tracking mixed Asian cues. The Nifty settled above 17,700 mark after hovering in a range of 17,608.15 and 17,781.75. A spike in U.S. benchmark bond yields and a strong dollar capped gains in equities. Trading was volatile ahead of monthly F&O expiry on Thursday, 30 September 2021.Nifty finally ended the day with the losses of 37.30 points at 17711.30 levels.

* Marginal Short built up was seen in the Nifty Futures where Open Interest rose by 0.18% with Nifty falling by 0.21%.

* On the other hand major short build up was seen in Bank Nifty Futures’ where Open Interest rose by 15.94% with Bank Nifty falling by 0.53%.

* Nifty Open Interest Put Call Ratio remained steady at 0.94 levels. Amongst the Nifty options (30-Sep Expiry), Put writing was seen at 17500-17600 levels, Indicating Nifty is likely to find support in the vicinity of 17500 - 17600 levels. On the higher side, an immediate resistance is seen in the vicinity of 17800 - 17900 levels where we have seen Call writing.

* Short Built up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 1572 Cr with their Open Interest going up by 1427 contracts.

To Sum It Up, Short build up in the Bank Nifty futures, Short built up by FII’s in the Index Futures and Call writing at 17800 - 17900 levels Indicates that one should continue to remain cautious for the markets.

Therefore, our advise is to accumulate Short positions by keeping a stop loss at 17800 level.

In the Bank Nifty, where we have seen short build up, our advice is to go short by keeping stop loss at 38000 level .

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