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Nifty Open Interest Put Call ratio fell to 0.86 from 0.99 level - HDFC Securities

F&O HIGHLIGHTS

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

CREATE SHORT POSITION WITH THE STOP LOSS OF 18100 LEVELS

* Nifty Future ended on weak note with the loss of 137 points to close at 18004 , dragged by banking and metal stocks.

* Short build up is seen in the Nifty Futures where Open Interest rose by 1% with Nifty Future’s falling by 0.8%.

* Short build up is also seen in the Bank Nifty Futures where Open Interest rose by 10% with Bank Nifty Future’s falling by 1%.

* Nifty Open Interest Put Call ratio fell to 0.86 from 0.99 level. Amongst the Nifty options (18-NOV Expiry), Call writing is seen in the vicinity of 18100 – 18200 levels, Indicating Nifty is likely to find resistance in the vicinity of 18100 - 18200 levels. On the lower side, an immediate support is seen in the vicinity of 17900 - 17800 levels where we have seen Put writing.

* Long unwinding is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 578 Cr with their Open Interest going down by 2098 contracts.

To Sum It up, short build up in the Nifty futures, short build up in the Bank Nifty Futures and Call writing at 18100 levels Indicates that Indicates that one should be cautious for the markets.

Therefore, our advise is to sell on every rise with the stop loss of 18100 levels. On the lower side 17900-17800 levels will act as a strong support.

In the Bank Nifty, our advice is to go short with stop loss of 38700 levels. On the lower side 38000-37600 level may act as support going forward.

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