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Nifty Open Interest Put Call Ratio rose to 1.51 levels from 1.47 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE BANK NIFTY FUTURES

REMAIN BULLISH WITH STOP LOSS OF 17500 IN NIFTY AND 37300 IN BANK NIFTY

* Nifty closed at record highs for the third consecutive session on Sept 16 aided by Banks & FMCG shares. At close the Nifty was up 0.63% or 110 points at 17630.

* Long build up was seen in Nifty Futures’, where Open Interest rose by 1% with Nifty rising by 0.63%

* Long build up was seen in Bank Nifty Futures’ too where Open Interest rose by 6% with Bank Nifty rising by 2.20%

* Nifty Open Interest Put Call Ratio rose to 1.51 levels from 1.47 levels. Amongst the Nifty options (23-Sep Expiry), Put writing was seen at 17500-17600 levels, Indicating Nifty is likely to find support in the vicinity of 17500 - 17600 levels. On the higher side, an immediate resistance is seen in the vicinity of 17700 - 17800 levels where we have seen Call writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bough worth Rs 235 Cr with their Open Interest going down by 5594 contracts.

To Sum It Up, Long build up in the Nifty and Bank Nifty futures, rise in the NIfty Put call ratio on the back of Put writing at 17500 - 17600 levels and short covering by FIIs in the Index futures segment, Indicates that one should continue to remain optimistic for the markets.

Therefore, our advise is to remain bullish with trailing SL of 17500 level.

In the Bank Nifty, where we have seen long build up, our advice is to remain bullish with trailing SL of 37300 level.

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