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Nifty Open Interest Put Call Ratio rose to 1.12 levels from 0.84 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING IS SEEN IN THE NIFTY AND BANK NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 17600 LEVELS

* Nifty recoupled most of the Wednesday’s losses where it ended the day with the gains of 144 points to close at 17790 levels.

* Short covering is seen in the Nifty Futures where Open Interest fell by 4% with Nifty rising by 0.82%.

* Short covering is seen in Bank Nifty Futures’ too where Open Interest fell by 9% with Bank Nifty rising by 0.60%.

* Nifty Open Interest Put Call Ratio rose to 1.12 levels from 0.84 levels. Amongst the Nifty options (14-Oct Expiry), Put writing was seen at 17600-17700 levels, Indicating Nifty is likely to find support in the vicinity of 17600 - 17700 levels. On the higher side, an immediate resistance is seen in the vicinity of 17900 - 18000 levels where we have seen Call writing.

* Short covering is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 1195 Cr with their Open Interest going down by 17096 contracts.

To Sum It Up, Short covering in the both Nifty and Bank Nifty futures, rise in the Nifty Put call ratio on the back of Put writing at 17600 - 17700 levels and short covering by 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 17600 level. On the higher side 17900-18000 levels will act as an immediate resistance.

In the Bank Nifty, where we have seen short covering, our advice is to go long with SL of 37200 levels.

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