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Nifty Open Interest Put Call Ratio rose to 1.59 levels from 1.40 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY AND BANK NIFTY FUTURES

HOLD LONG POSITION WITH THE STOPL LOSS OF 16800

* Nifty ended on a positive note with the gain of 225.85 points as US Federal Reserve indicated it was in no hurry to raise interest rates .

* Long build up was seen in Nifty Futures’, where Open Interest rose by 4% with Nifty rising by 1.35%

* Long buildup was seen in Bank Nifty Futures’ too where Open Interest rose by 14% with Bank Nifty rising by 2.11%

* Nifty Open Interest Put Call Ratio rose to 1.59 levels from 1.40 levels. Amongst the Nifty options (02-September Expiry), Put writing was seen at 16800 levels, Indicating Nifty is likely to find support in the vicinity of 16700-16800 levels. On the higher side, an immediate resistance is seen in the vicinity of 17000-17100 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 558 Cr with their Open Interest going up by 5010 contracts.

To Sum It Up, long build up in the Nifty futures and Bank Nifty futures, Put writing at 16700-16800 levels and long build up by FIIs in the Index futures segment Indicates that one should remain bullish for the markets.

Therefore, our advise is remain bullish with the strict SL of 16800 levels. On the higher side resistance is seen around 17000-17100 levels where Calls have been written

In the Bank Nifty our advice is to remain bullish with the stop loss of 36400 levels. On the higher side, resistance is seen in the vicinity of 36800-37000 levels

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