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Nifty Open Interest Put Call Ratio remained steady at 1.15 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY FUTURES AT LOWER LEVELS

ACCUMULATE LONGS WITH THE STOP LOSS OF 17400 LEVELS

* Nifty remained in the narrow range and finally ended the day with the losses of 15 points at 17547 levels.

* Long build up is seen in the Nifty Futures at lower levels where Open Interest rose by 0.5% with Nifty future premium turned into premium of 22 points from discount of 3 points.

* On the other hand, short build up is seen in Bank Nifty Futures’ where Open Interest rose by 4% with Bank Nifty falling by 0.80%.

* Nifty Open Interest Put Call Ratio remained steady at 1.15 levels. Amongst the Nifty options (23-Sep Expiry), Put writing was seen at 17400-17500 levels, Indicating Nifty is likely to find support in the vicinity of 17400 - 17500 levels. On the higher side, an immediate resistance is seen in the vicinity of 17700 - 17800 levels where we have seen Call writing.

* Long unwinding was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 958 Cr with their Open Interest going down by 6215 contracts.

To Sum It Up, Long build up in the Nifty futures from lower levels and Put writing at 17400 - 17500 levels Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to accumulate long positions with trailing SL of 17400 level. On the higher side 17700-17800 levels will act as a resistance.

In the Bank Nifty, where we have seen short build up, our advice is to go long only If sustains above 37000 level.

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