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Nifty Open Interest Put Call Ratio rose to 1.47 levels from 1.19 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY FUTURES

BE BULLISH WITH THE STOP LOSS AT 17400 LEVEL​​​​​​​

* The Nifty ended near the day's high after a strong session on Wednesday. The Nifty closed above the 17,500 mark. Cabinet approval for production linked incentives (PLI) for auto sector and relief measures for telecom sector boosted sentiment. Barring the Nifty Media index, all the sectoral indices on the NSE ended in the green. Nifty rose more than 139.45 points and finally ended the day at 17519.45 .

* Long build up was seen in Nifty Futures’, where Open Interest rose by 4.41% with Nifty rising by 0.80%

* Short covering was seen in Bank Nifty Futures’ where Open Interest fell by 1.92% with Bank Nifty rising by 0.65%

* Nifty Open Interest Put Call Ratio rose to 1.47 levels from 1.19 levels. Amongst the Nifty options (16-Sep Expiry), Put writing was seen at 17400 levels, Indicating Nifty is likely to find support in the vicinity of 17400 - 17500 levels. On the higherside, an immediate resistance is seen in the vicinity of 17600 - 17700 levels where we have seen Call writing.

* Long built up was seen by FIIS’ in the Index Futures segment where they net bough worth Rs 171 Cr with their Open Interest going up by 5067 contracts.

To Sum It Up, Long build up in the Nifty, Put writing at 17400 - 17500 levels and long built up by FIIs in the Index futures segment, Indicates that one should remain optimistic for the markets.

Therefore, our advise is to create long positions in Nifty Future’s keeping stop loss at 17400 level.

In the Bank Nifty, our advice is to be bullish if Bank Nifty trades above 37000 level.

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