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Nifty Open Interest Put Call ratio fell to 0.73 from 1.30 levels - HDFC Securities

F&O HIGHLIGHTS

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

HOLD SHORT POSITION WITH THE STOP LOSS OF 17200 LEVELS

* Nifty Future’s witnessed negative trading activity throughout the day and ended lower by 536 points to close at 17052.15 on the back of a global sell-off following the emergence of new variant of Covid-19.

* Short build up is seen in the Nifty Futures where Open Interest rose by 5% with Nifty falling by 3.1%.

* Short build up was seen in the Bank Nifty Futures too where Open Interest rose by 22% with Bank Nifty falling by 3.6%.

* Nifty Open Interest Put Call ratio fell to 0.73 from 1.30 levels. Amongst the Nifty options (02-Dec Expiry), Call writing is seen at 17100-17200 levels, Indicating Nifty is likely to find resistance in the vicinity of 17100 - 17200 levels. On the lower side, an immediate supports are seen in the vicinity of 16900 - 16800 levels where we have seen Puts writing.

* Long unwinding is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 3271 Cr with their Open Interest going down by 5479 contracts.

To Sum It up, Short build up in the Nifty futures, Short build up in the Bank Nifty futures, Call writing at 17100-17200 levels and long unwinding by FII’s in Index future segment Indicates that one should be cautious for the markets.

Therefore, our advise is to hold short position on with the stop loss of 17200 levels. On the Lower side 16900-16800 levels will act as a strong support.

In the Bank Nifty, our advice is to go short with the Stop loss of 36700 levels. On the lower side 35500-35000 level may act as support going forward.

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