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Nifty Open Interest Put Call Ratio rose to 1.40 levels from 1.23 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 16600 LEVELS​​​​​​​

* Nifty managed to close on a positive note and ended the day with the gains of 68.30 points to close at 16705.20 levels which is All time high levels.

* Long build up was seen in Nifty Futures’ where Open Interest rose by 9% with Nifty gaining by 0.41%.

* Long build up was seen in the Bank Nifty Futures too, where we have seen 4% rise in the Open Interest with Bank Nifty rising by 0.03%.

* Nifty Open Interest Put Call Ratio rose to 1.40 levels from 1.23 levels. Amongst the Nifty options (02-Sep Expiry), PUT writing was seen at 16600-16500 levels, Indicating Nifty is likely to find support in the vicinity of 16600-16500 levels. On the higher side, resistance is seen around 16800-16900 levels where we have seen call writing.

* Long build up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 415 Cr with their Open Interest going up by 5378 contracts.

To Sum It Up, Long build up in the Nifty and Bank Nifty Futures, rise in PCR on the back of Put writing at 16600-16500 levels and long build up by the FIIS’ in the Index and 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 16600 levels. On the higher side 16800-16900 levels will act as an immediate resistance where Calls have been written

In the Bank Nifty, our advice is to hold long position with the stop loss of 35200 levels. On the higher side, resistance is seen in the vicinity of 36100-36400 levels.

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