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Nifty Open Interest Put Call Ratio rise to 1.35 levels from 1.27 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP WAS SEEN IN THE NIFTY FUTURES

REMAIN BULLISH WITH TRAILING STOP LOSS OF 15600 LEVEL

* Markets ended with strong gains on Thursday, with small and midcap stocks outperforming. Realty stocks rallied while pharma stocks corrected. Global cues were mixed ahead of the release of key US economic data. Banks stocks advanced ahead of the outcome of the Reserve Bank of India's (RBI) bi-monthly monetary policy review on Friday (4 June). Nifty continued its upward journey with the up gap where it gained 114 points to close at 15690 level. Vix is trading at lowest level since Feb 2020 at 15.75 levels.

* Long build up was seen in Nifty Futures’ where Open Interest rose by 4.37% with Nifty rising by 0.73%.

* Short covering was seen in the Bank Nifty Futures, where we have see fall in OI to the extent of 0.59% with Bank Nifty rising by 0.71%.

* Nifty Open Interest Put Call Ratio rise to 1.35 levels from 1.27 levels. Amongst the Nifty options (10-June Expiry), Put writing was seen at 15600 level, Indicating support is at 15600 levels. On the higher side, resistance is seen in the vicinity of 15800-15900 levels where we have seen Call writing.

To Sum It Up, long build up in Nifty futures, short covering in the Bank Nifty Futures & Put writing at 15600 level Indicates that one should remain optimistic for the markets.

Therefore, our advise is to remain bullish with the trailing stop loss of 15600 levels. On the higher side 15800-15900 levels will act as an immediate resistance where Calls have been written

In the Bank Nifty, our advice is to buy on decline with SL of 35500 levels. On the higher side, resistance is seen in the vicinity of 36000-36200 levels.

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