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Nifty Open Interest Put Call ratio fell to 0.87 levels from 0.94 levels  -  HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE NIFTY FUTURES

REMAIN BEARISH WITH SL OF 17800 LEVELS ; SUPPORT IS SEEN IN THE VICINITY OF 17400-17500 LEVELS

* Nifty continued its downward journey for the fourth day in the row , where it fell by 140 points or 0.79% to close at 17617 levels.

* Short build up is seen in the Nifty Futures where Open Interest rose by 3% with Nifty falling by 0.79%.

* On the other hand, Long unwinding is seen in the Bank Nifty Futures where Open Interest fell by 0.5% with Bank Nifty falling by 0.73%.

*  Nifty Open Interest Put Call ratio fell to 0.87 levels from 0.94 levels. Amongst the Nifty options (27-Jan Expiry), Put writing is seen at 17400-17500 levels, Indicating Nifty is likely to find strong support in the vicinity of 17400 - 17500 levels. On the higher side, an immediate resistance is seen in the vicinity of 17700-17800 levels where we have seen Call writing.

*  Short build up is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 616 Cr with their Open Interest going up by 2338 contracts. To Sum It up, Short build up in the Nifty Futures, Long unwinding in the Bank Nifty futures, Call writing at 17700-17800 levels and short build up by the FIIs’ in the Index Futures segment Indicates that one should remain cautious for the markets.

Therefore, our advise is to remain cautious till Nifty closes above 17800 levels. On the lower side 17400-17500 level will act as a support where we have seen Put writing.

In the Bank Nifty, which outperformed the Nifty yesterday, our advice is to go long If Bank nifty crosses 38000 levels on the higher side. On the lower side 36800 level may act as support going forward.

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