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Nifty Open Interest Put Call ratio fell to 0.76 levels from 0.78 levels -  HDFC Securities

F&O HIGHLIGHTS

LONG UNWINDING IS SEEN IN THE NIFTY AND BANK NIFTY FUTURES

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 18000; SUPPORT IS SEEN IN THE VICINITY OF 17500-17600 LEVELS

➢ Nifty continued its downward journey for the third day in the row , where it fell by 181 points or 1% to close at 17757 levels.

➢ Long unwinding is seen in the Nifty Futures where Open Interest fell by 0.17% with Nifty falling by 1.01%.

➢ Long unwinding is seen in the Bank Nifty Futures too where Open Interest fell by 5% with Bank Nifty falling by 0.50%.

➢ Nifty Open Interest Put Call ratio fell to 0.76 levels from 0.78 levels. Amongst the Nifty options (27-Jan Expiry), Put writing is seen at 17500-17600 levels, Indicating Nifty is likely to find strong support in the vicinity of 17500 - 17600 levels. On the higher side, an immediate resistance is seen in the vicinity of 17800-18000 levels where we have seen Call writing.

➢ Short build up is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 2103 Cr with their Open Interest going up by 2890 contracts

To Sum It up, Long unwinding in the Nifty and Bank Nifty futures, Call writing at 17800-18000 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 cautious till Nifty closes above 18000 levels. On the lower side 17500-17600 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 go long If Bank nifty crosses 38000 levels on the higher side. On the lower side 37200- 37500 level may act as support going forward.

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