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Nifty Open Interest Put Call Ratio rose sharply to 1.49 levels from 1.28 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 18000 LEVELS​​​​​​​

* Nifty continued its upward journey for the fifth day in the row where it gained by 170 points to close at yet another all time high level at 18162 levels

* Long build up is seen in the Nifty Futures where Open Interest rose by 0.3% with Nifty rising by 0.94%.

* Long build up is seen in Bank Nifty Futures’ too where Open Interest rose by 3% with Bank Nifty rising by 0.30%.

* Nifty Open Interest Put Call Ratio rose sharply to 1.49 levels from 1.28 levels. Amongst the Nifty options (14-Oct Expiry), Put writing is seen at 18000-18100 levels, Indicating Nifty is likely to find support in the vicinity of 18000 - 18100 levels. On the higher side, an immediate resistance is seen in the vicinity of 18200 - 18300 levels where we have seen Call writing.

* Long build up is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 1205 Cr with their Open Interest going up by 10815 contracts.

To Sum It up, Long build up in the both Nifty and Bank Nifty futures , Put writing at 18000 - 18100 levels and long build up by the FIIS in the Index futures segment Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to accumulate long positions with trailing SL of 18000 level. On the higher side 18200-18300 levels will act as a resistance.

In the Bank Nifty, our advice is to go long with SL of 38300 levels. On the higher side 39000-39500 level may act as resistance going forward

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