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Nifty Open Interest Put Call ratio fell to 0.86 levels from 1.15 levels  -  HDFC Securities

F&O HIGHLIGHTS

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

EXIT LONG POSITION IF NIFTY TRADES BELOW 17500 LEVELS.

* Nifty broke the three day winking streak, where it fell by 219.80 points or -1.24% to close at 17560 levels.

* Short build up is seen in the Nifty Futures where Open Interest rose by 7.9% with Nifty falling by 1.40%.

* Short build up is also seen in the Bank Nifty Futures where Open Interest rose by 4.7% with Bank Nifty falling by 0.81%.

* Nifty Open Interest Put Call ratio fell to 0.86 levels from 1.15 levels. Amongst the Nifty options (10-Feb Expiry), Call writing is seen at 17700-17800 levels, Indicating Nifty is likely to find strong resistance in the vicinity of 17700 - 17800 levels. On the lower side, an immediate support is seen in the vicinity of 17500-17400 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 1185 Cr with their Open Interest going up by 11716 contracts. To Sum It up, Short build up in the Nifty and Bank Nifty Futures, Call writing at 17700-17800 levels and Short build up by FII’s in Index and Stock futures segment, Indicates that upside is limited in the markets.

Therefore, our advise is to exit long If Nifty starts trading below 17500 levels. On the higher side 17700-17800 level will act as a resistance where we have seen Call writing. In the Bank Nifty, our advice is to exit longs If Bank Nifty starts trading below 38500 levels. On the higher side 39600-39900 level will act as a strong resistance.

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