IGI Logo

Nifty Open Interest Put Call ratio fell further to 0.67 levels from 0.87 levels  -  HDFC Securities

F&O HIGHLIGHTS

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

REMAIN BEARISH WITH TRAILING SL OF 17400 LEVELS ; SUPPORT IS SEEN IN THE VICINITY OF 16900-17000 LEVELS

* Nifty continued its downward journey for the fifth day in the row , where it plunged 468 points or 2.66% to close at 17149 levels. This is the highest percentage fall since April 2021.

* Massive Short build up is seen in the Nifty Futures where Open Interest rose by 14% with Nifty falling by 2.66%.

* Short build up is seen in the Bank Nifty Futures too where Open Interest rose by 7% with Bank Nifty falling by 1.67%.

* Nifty Open Interest Put Call ratio fell further to 0.67 levels from 0.87 levels. Amongst the Nifty options (27-Jan Expiry), Call writing is seen at 17300-17400 levels, Indicating Nifty is likely to find strong resistance in the vicinity of 17300 - 17400 levels. On the lower side, an immediate support is seen in the vicinity of 16900-17000 levels where we have seen Put writing earlier.

* Short build up is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 1573 Cr with their Open Interest going up by 2706 contracts. To Sum It up, Short build up in the Nifty Futures, Short build up in the Bank Nifty futures, Call writing at 17300-17400 levels and short build up by the FIIs’ in the Index Futures segment Indicates that one should remain cautious for the markets.

Therefore, our advise is to remain bearish till Nifty closes above 17400 levels. On the lower side 16900-17000 level will act as a support where we have seen Put writing. In the Bank Nifty, which outperformed the Nifty yesterday, our advice is to remain bearish till it closes above 37500 levels. On the lower side. On the lower side 36200-36500 level may act as support going forward.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer