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Nifty Open Interest Put Call ratio fell to 0.78 from 0.81 level - HDFC Securities

F&O HIGHLIGHTS

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

REMAIN SHORT WITH THE STOP LOSS OF 17900 LEVELS​​​​​​​

* Nifty witnessed negative trading activity throughout the day on Thursday and ended lower with the loss of 116 points to close at 17792.90 on the back of weak global cues.

* Short build up is seen in the Nifty Futures where Open Interest rose by 3% with Nifty Future’s falling by 0.75%.

* Short build up is also seen in the Bank Nifty Futures where Open Interest rose by 5% with Bank Nifty Future’s falling by 0.2%.

* Nifty Open Interest Put Call ratio fell to 0.78 from 0.81 level. PCR is also heading towards oversold level of 0.65. Amongst the Nifty options (25-NOV Expiry), Call writing is seen at 17900– 18000 levels, Indicating Nifty is likely to find resistance in the vicinity of 17900 - 18000 levels. On the lower side, an immediate support is seen in the vicinity of 17700 - 17600 levels where we have seen Put writing.

* Short build is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 180 Cr with their Open Interest going up by 10289 contracts.

To Sum It up, short build up in the Nifty futures, short build up in the Bank Nifty Futures, Call writing at 17900 – 18000 levels and Short build up by FII’s in the index future segment Indicates that Indicates that one should be cautious for the markets.

Therefore, our advise is to hold short with the stop loss of 17900 levels. On the lower side 17700-17600 levels will act as a strong support.

In the Bank Nifty, our advice is to hold short position with the stop loss of 38500 levels. On the lower side 37500-37000 level may act as support going forward.

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