IGI Logo

F&O HIGHLIGHTS

Nifty Open Interest Put Call ratio fell to 0.84 levels from 1.06 levels - HDFC Securities 

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

GO LONG IN NIFTY IF IT STARTS TRADING ABOVE 16700 LEVELS.

* The Nifty ended with deep cuts on Wednesday. The Nifty settled above the 16,600 mark after hitting the day's low at 16,478.65 in early afternoon trade. Banks, financials and auto shares were under pressure. Metals and oil & gas stocks bucked the weak market trend. Nifty finally closed down by 1.12% at 16605.95 level.

* Short built up was seen in the Nifty Futures where Open Interest rose by 12.36% with Nifty falling by 1.12%.

* Major Short build up was seen in the Bank Nifty Futures where Open Interest rose by 39.03% with Bank Nifty falling by 2.30%.

* Nifty Open Interest Put Call ratio fell to 0.84 levels from 1.06 levels. Amongst the Nifty options (03-Mar Expiry), Call writing is seen at 16700-16800 levels, Indicating Nifty is likely to find strong resistance in the vicinity of 16800 - 17000 levels. On the lower side, an immediate supportis seen in the vicinity of 16400-16500 levels where we have seen Put writing .

* Short build up is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 3245 Cr with their Open Interest going up by 29066 contracts. Although we have seen Short built up in Nifty Futures and Bank Nifty Futures SGX Nifty is suggesting otherwise.

Therefore, If our markets opens up as our SGX Nifty is suggesting, our advise is to go long If Nifty starts trading above 16700 levels with SL of 16500 levels. On the higher side 16800 level will act as a resistance where we have seen Call writing. In the Bank Nifty, our advice is to go longs If Bank Nifty starts trading above 35800 levels with SL of 35000 levels.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer