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Nifty Open Interest Put Call ratio fell to 0.67 level from 0.88 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE NIFTY & BANKNIFTY FUTURES

HOLD SHORT POSITION WITH THE STOP LOSS OF 17500 LEVELS

* Nifty Future ended lower consecutive for fifth day with the loss of 357 points to close at 17435 levels.

* Short build up is seen in the Nifty Futures where Open Interest rising by 1.8% with Nifty Futures falling by 2.0%.

* Short build up is also seen in the Bank Nifty Futures where Open Interest rise by 6.9% with Bank Nifty Futures falling by 2.3%.

* Nifty Open Interest Put Call ratio fell to 0.67 level from 0.88 levels. Amongst the Nifty options (25-Nov Expiry), Call writing is seen at of 17500 – 17600 levels, Indicating Nifty is likely to find resistance in the vicinity of 17500 - 17600 levels. On the lower side, an immediate support is seen in the vicinity of 17300 - 17200 levels where we have seen Put writing.

* Long build up is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 134 Cr with their Open Interest going up by 2754 contracts.

To Sum It up, Short build up in the Nifty futures, short builtup in the Bank Nifty Futures and Call writing at 17500-17600 levels Indicates that Indicates that one should be cautious for the markets.

Therefore, our advise is to hold short with the stop loss of 17500 levels. On the lower side 17300-17200 levels will act as a strong support.

In the Bank Nifty, our advice is to hold short position with the strict stop loss of 37800 levels. On the lower side 36700-36300 level may act as support going forward.

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