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Nifty Open Interest Put Call ratio fell to 0.84 from 0.86 level -  HDFC Securities

F&O HIGHLIGHTS

PCR IS HEADING TOWARDS OVERSOLD LEVEL OF 0.75

ACCUMULATE LONGS ON DECLINE WITH THE STOP LOSS OF 17200 LEVELS

* The Nifty ended with modest cuts on Tuesday. The Nifty managed to settle above 17,300 level after hitting the day's low of 17,225.80 in morning trade. Banks and financial stocks declined while media, pharma and healthcare were in demand. Nifty Finally closed down by 43.35 points at 17324.90.

* Short built up of positions was seen in the Nifty Futures where Open Interest rose by 8.56% with Nifty falling by 0.25%.

* Marginal Short build up was seen in the Bank Nifty Futures where Open Interest rose by 0.17% with Bank Nifty falling by 0.08%.

* Nifty Open Interest Put Call ratio fell to 0.84 from 0.86 level. Nifty PCR is heading towards its oversold level of 0.75. Amongst the Nifty options (16-Dec Expiry), Put writing is seen at 17200 levels, Indicating Nifty is likely to find support in the vicinity of 17200 - 17300 levels. On the higher side, an immediate resistance are seen in the vicinity of 17500 - 17600 levels where we have seen Call writing.

* Short built up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 1657 Cr with their Open Interest going up by 11858 contracts.

To Sum It up, Long built up from the lower level in the Nifty futures where Nifty has rose more than 50 points in the last 20 + mins, PCR is trading near its oversold level and Put writing at 17200 levels Indicates that one should remain optimistic for the market

Therefore, our advise is to accumulate longs on dips with the stop loss of 17200 levels. On the higher side 17500 - 17600 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long on dips with trailing SL of 36500 levels. On the higher side 37000 - 37500 level may act as resistance going forward.

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