IGI Logo

Nifty Open Interest Put Call ratio fell to 0.71 from 0.91 level -  HDFC Securities

F&O HIGHLIGHTS

PCR IS CURRENLY TRADING IN OVERSOLD REGION

ACCUMULATE LONGS ON DECLINE WITH THE STOP LOSS OF 16900 LEVELS​​​​​​​

* Nifty indices fell sharply on Monday amid uncertainty around the new coronavirus variant and due to pressure from foreign institutional investors selling. Another factor which worried investors was the upcoming monetary policy review meeting, where the RBI could introduce measures to tackle inflation. All the sectoral indices on the NSE ended in the red. IT and auto shares tumbled. Nifty Finally closed down by 285 points at 16912.25.

* Short built up was seen in the Nifty Futures where Open Interest rose by 2.94% with Nifty falling by 1.65%.

* Short build up was seen in the Bank Nifty Futures too where Open Interest rose by 4.59% with Bank Nifty falling by 1.27%.

* Nifty Open Interest Put Call ratio fell to 0.71 from 0.91 level. PCR currently trading in oversold region hence bounce in the Nifty is possible. Amongst the Nifty options (09-Dec Expiry), Put writing is seen at 16900 levels, Indicating Nifty is likely to find support in the vicinity of 16800 - 16900 levels. On the higher side, an immediate resistance are seen in the vicinity of 17100 - 17200 levels where we have seen Call writing.

* Short built up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 1155 Cr with their Open Interest going up by 1241 contracts.

To Sum It up, short built up in the Nifty futures, Short build up in the Bank Nifty Futures and Call writing at 17200 levels Indicates that Indicates that one should be cautious on the markets.

Therefore, our advise is to accumulate longs on dips with the stop loss of 16900 levels. On the higher side 17100 - 17200 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long on dips with trailing SL of 35000 levels. On the higher side 36000 - 36500 level may act as resistance 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