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Nifty Open Interest Put Call Ratio rose to 0.93 from 0.90 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 15800; SUPPORT SEEN AROUND 15600

Nifty recovered more than 200 points from the intra day low and finally ended the day with the minor losses of 37 points to close at 15709 levels.

Minor short build up was seen in Nifty Futures’ where Open Interest rose by 0.1% with Nifty falling by 0.24%

Short build up was seen in Bank Nifty Futures’ too where Open Interest rose by 2% with Bank Nifty falling by 0.8%

Nifty Open Interest Put Call Ratio rose to 0.93 from 0.90 levels. Amongst the Nifty options (29- July Expiry), Put writing was seen at 15500-15600 levels, Indicating Nifty is likely to find support in the vicinity of 15500-15600 levels. On the higher side, an immediate resistance is seen around levels where we have seen Call writing.

Long unwinding was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 356 Cr with their Open Interest going down by 77 contracts.

To Sum It Up, Short build up in the Nifty and Bank Nifty Futures, Call writing at 15800 levels and long unwinding by FIIs in the Index futures segment Indicates that one should remain cautious for the markets.

Therefore, our advise is to use any rally to prune long positions and wait for Nifty to close above 15800 levels for building aggressive long positions. On the lower side 15500-15600 level will act as an immediate support where Puts have been written.

In the Bank Nifty, our advice is to remain cautious with the stop loss of 35000 levels. On the lower side, support is seen in the vicinity of 34000-34200 levels.

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