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Nifty Open Interest Put Call Ratio rose to 1.51 levels from 1.32 levels -  HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP WAS SEEN IN THE NIFTY FUTURES

REMAIN BULLISH WITH TRAILING STOP LOSS OF 15400 LEVELS

* Nifty continued its upward journey for the seventh days on the trot where it gained 147 points to close at 15583 levels.

* Long build up was seen in Nifty Futures’ where Open Interest rose by 2% with Nifty rising by 1%.

* On the other hand, short covering was seen in the Bank Nifty Futures, where we have seen 1% fall in the Open Interest with Bank Nifty rising by 1.1%.

* Nifty Open Interest Put Call Ratio rose to 1.51 levels from 1.32 levels. Amongst the Nifty options (03-June Expiry), Put writing was seen at 15400-15500 levels, Indicating support has shifted upwards to 15400 levels. On the higher side, resistance is seen in the vicinity of 15700- 15800 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 690 Cr with their Open Interest going up by 4234 contracts.

To Sum It Up, long build up in Nifty futures, short covering in the Bank Nifty Futures, Put writing at 15400-15500 levels and long build up by FIIs’ in the Index option segment Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to remain bullish with the trailing stop loss of 15400 levels. On the higher side 15700-15800 level will act as an immediate resistance where Calls have been written

In the Bank Nifty, our advice is to buy on decline with SL of 35000 levels. On the higher side, resistance is seen in the vicinity of 36000-36200 levels.

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