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Nifty Open Interest Put Call Ratio rose to 1.22 levels from 1.18 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP WAS SEEN IN THE NIFTY FUTURES

BE BULLISH WITH TRAILING STOP LOSS OF 15700 LEVELS

* The market settled with modest gains on Monday. The Nifty recovered from its early low of 15,505.65 and settled near the 15,750 mark amid value buying after a three-day losing streak. Barring the IT and Auto index, all the sectoral indices on the NSE ended in the green. Shares of Adani Group companies were in demand after a recent selloff. Nifty finally closed up by 0.40% at 15746.50 level.

* Long build up was seen in Nifty Futures’ where Open Interest rose marginally by 0.29% with Nifty rising by 0.40%.

* Long build was seen in the Bank Nifty Futures too, where we have seen 1.23% rise in the Open Interest with Bank Nifty rising by 0.91%.

* Nifty Open Interest Put Call Ratio rose to 1.22 levels from 1.18 levels. Amongst the Nifty options (24-June Expiry), Put writing was seen at 15600-15700 levels, Indicating support is seen around 15700 levels. On the higher side, resistance is seen in the vicinity of 15900-16000 levels where we have seen Call writing.

To Sum It Up, long build up in Nifty futures, Long build up in the Bank Nifty Futures, Put writing at 15600-15700 levels and long build up by FIIs’ in the Index Futures segment Indicates that one should remain optimistic for the markets.

Therefore, our advise is to be bullish with the trailing stop loss of 15700 levels. On the higher side 15900 - 16000 levels will act as an immediate resistance where Calls have been written

In the Bank Nifty, our advice is to buy with the trailing stop loss of 34500 levels. On the higher side, resistance is seen in the vicinity of 35500-36000 levels.

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