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Nifty Open Interest Put Call Ratio rose to 1.41 levels from 1.30 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP WAS SEEN IN THE NIFTY FUTURES

REMAIN BULLISH WITH TRAILING STOP LOSS OF 15700 LEVEL

* Nifty closed with modest gains on Monday as declining COVID-19 cases and positive global stocks boosted sentiment. The Nifty managed to close above the 15,750 level after hitting a fresh record high of 15,773.45 in mid-afternoon trade. IT stocks were in demand while metal and pharma shares corrected. Nifty finally closed at 15751 up by 0.52%

* Long build up was seen in Nifty Futures’ where Open Interest rose by 1.82% with Nifty rising by 0.52%.

* Unwinding was seen in the Bank Nifty Futures, where we have seen 2.78% fall in the Open Interest with Bank Nifty rising by 0.43%.

* Nifty Open Interest Put Call Ratio rose to 1.41 levels from 1.30 levels. Amongst the Nifty options (10-June Expiry), Put writing was seen at 15600-15700 levels, Indicating support is seen around 15700 level. 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 & Put writing at 15600-15700 levels Indicates that one should continue to 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 levels could act as an resistance where Calls have been written

In the Bank Nifty, our advice is to buy on decline with SL of 35300 level. On the higher side, resistance is seen in the vicinity of 35600-36000 levels.

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