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Nifty Open Interest Put Call Ratio was constant at 1.42 level -   HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP WAS SEEN IN THE NIFTY FUTURES

BE BULLISH WITH TRAILING STOP LOSS OF 15700 LEVEL

* The market ended with decent gains on Tuesday. The Nifty closed above the 15,850 mark. Private banks and FMCG and media stocks advanced while pharma and PSU banks corrected. Nifty finally closed up by 0.36% at 15869.25. Nifty futures premium narrowed to 9.75 points from 20.80 points.

* Long build up was seen in Nifty Futures’ where Open Interest rose by 4.99% with Nifty rising by 0.36%.

* Unwinding was seen in the Bank Nifty Futures, where we have seen 1.19% fall in the Open Interest with Bank Nifty rising by 0.85%.

* Nifty Open Interest Put Call Ratio was constant at 1.42 level. Amongst the Nifty options (17 - June Expiry), Put highest outstanding positions are at 15700-15800 levels, Indicating support is seen around 15700 levels. On the higher side, resistance is seen in the vicinity of 16000-16100 levels where we have seen Call writing.

To Sum It Up, long build up in the Nifty futures & maximum OI in Put at 15700 – 15800 level suggests that one should continue to remain optimistic for the markets.

Therefore, our advise is to be bullish with the trailing stop loss of 15700 levels. On the higher side 16000 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 34900 levels. On the higher side, resistance is seen in the vicinity of 35500-36000 levels.

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