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Nifty Open Interest Put Call ratio fell to 0.78 level from 0.90 level - HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING WAS SEEN IN THE BANK NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 17800 LEVELS​​​​​​​

* The Nifty ended with small losses on Tuesday. Metals and oil & gas stocks tumbled while PSU banks and realty shares rallied. Global stocks were mixed ahead of the upcoming Bank of England and US Fed meetings. Investors are worrying that the global central banks may soon end the pandemic-era stimulus. Nifty ended the day with the loss of 40.70 points to close at 17888.95 levels.

* Unwinding was seen in the Nifty Futures where Open Interest fell by 3.94% with Nifty falling by 0.23%.

* Short covering was seen in the Bank Nifty Futures where Open Interest fell by 4.16% with Bank Nifty rising by 0.44%.

* Nifty Open Interest Put Call ratio fell to 0.78 level from 0.90 level. Amongst the Nifty options (03-Nov Expiry), Put writing is seen at 17800 levels, Indicating Nifty is likely to find support in the vicinity of 17700 - 17800 levels. On the higherside, an immediate resistance is seen in the vicinity of 18000 - 18100 levels where we have seen Call writing.

* Unwinding was seen by FIIS’ in the Index Futuressegment where they net sold worth Rs 1528 Cr with their Open Interest going down by 8309 contracts.

To Sum It up, Short covering seen in the Bank Nifty Futures and Put writing at 17700 - 17800 levels Indicates that one should be optimistic for the markets.

Therefore, our advise is to accumulate longs with the stop loss of 17800 levels.On the higher side 18000 - 18100 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long with trailing SL of 39800 levels. On the higher side 40500-40800 level may act as resistance going forward.

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