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Nifty Open Interest Put Call Ratio rose to 1.25 levels from 1.09 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

REMAIN BULLISH WITH THE TRAILING STOP LOSS OF 15700 LEVELS

* Nifty continued its upward journey for the second day in the row on the back of buying in Metal and Banking stocks. Nifty ended the day with the gains of 112 points to close at 15834 levels.

* Long build up was seen in Nifty Futures’ where Open Interest rose by 1% with Nifty rising by 0.71%.

* Long build up was seen in the Bank Nifty Futures too, where we have seen 3% rise in the Open Interest with Bank Nifty rising by 1.20%.

* Nifty Open Interest Put Call Ratio rose to 1.25 levels from 1.09 levels. Amongst the Nifty options (08-July Expiry), Put writing was seen at 15700-15800 levels, Indicating support has shifted upwards to 15700 levels from 15600 levels. On the higher side, resistance is seen in the vicinity of 15900-16000 levels where we have seen Call writing.

* Short build up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 133 Cr with their Open Interest going up by 8150 contracts.

To Sum It Up, Long build up in the Nifty and Bank Nifty Futures, Put writing at 15700-15800 levels and long build up by FIIs’ in the Stock Futures segment Indicates that one should remain optimistic for the markets.

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

In the Bank Nifty, our advice is to accumulate longs with the stop loss of 34800 levels. On the higher side, resistance is seen in the vicinity of 35500-35700 levels.

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