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Nifty Open Interest Put Call ratio fell to 0.83 from 0.94 levels - HDFC Securities

F&O HIGHLIGHTS

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

HOLD SHORT POSITION WITH THE STOP LOSS OF 18000 LEVELS

* Nifty witnessed selling pressure through out the day after US inflation hit 30 year high where it lost more than 100 points from the intraday high and ended the day lower to close at 17896.85 levels.

* Short build up was seen in the Nifty Futures where Open Interest rose by 5% with Nifty falling by 0.7%.

* Short build up is also seen in the Bank Nifty Futures where Open Interest rose by 5% with Bank Nifty falling by 1.2%.

* Nifty Open Interest Put Call ratio fell to 0.83 from 0.94 levels. PCR is heading towards oversold level of 0.75 level. Amongst the Nifty options (18-Nov Expiry), Call writing is seen at 18000 levels, Indicating Nifty is likely to find resistance in the vicinity of 18000 - 18100 levels. On the lower side, an immediate support is seen in the vicinity of 17800 - 17700 levels where we have seen Puts writing.

* Long build up is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 193 Cr with their Open Interest going up by 11208 contracts.

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

Therefore, our advise is to Create short position on rally with the stop loss of 18000 levels. On the Lower side 17800-17700 levels will act as a strong support.

In the Bank Nifty, our advice is to go short with trailing SL of 39000 levels. On the lower side 38400-38000 level may act as support going forward.

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