IGI Logo

Nifty Open Interest Put Call ratio fell to 0.91 levels from 1.01 level - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE NIFTY FUTURES​​​​​​​

GO SHORT IN BANK NIFTY IF IT STARTS TRADING BELOW 37000 LEVELS.

* The domestic equity benchmarks ended with modest losses on Wednesday, extending declines for the sixth day in a row. The benchmarks indices witnessed fag-end selling after hovering in the positive terrain for most part of the session. After hitting the day's high of 17,220.70 in early trade, the Nifty reversed gains and ended a tad above the 17,000 mark. Autos and financialshares declined while realty, consumer durables and metal shares advanced. Nifty finally closed down by 0.17% at 17063.25

* Short built up was seen in the Nifty Futures where Open Interest rose by 1.62% with Nifty falling by 0.17%.

* On the other hand, Long build up was seen in the Bank Nifty Futures where Open Interest rose by 4.62% with Bank Nifty rising by 0.05%.

* Nifty Open Interest Put Call ratio fell to 0.91 levels from 1.01 levels. Amongst the Nifty options (24-Feb Expiry), Call writing is seen at 17200-17300 levels, Indicating Nifty is likely to find strong resistance in the vicinity of 17200 - 17300 levels. On the lower side, an immediate supportis seen in the vicinity of 16900-16800 levels where we have seen Put writing .

* Long build up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 79 Cr with their Open Interest going up by 8733 contracts.

To Sum It up, Short built up in the Nifty Futures, Call writing at 17200-17300 levels Indicates that once should cautious on the markets

Therefore, If our markets opens sharpy lower as our SGX Nifty is suggesting, our advise is to go short If Nifty sustains below 16800 levels with SL of 17000 levels. On the lower side 16500 level will act as a support where we have seen massive Put writing. In the Bank Nifty, which outperformed the Nifty yesterday, our advice is to go short If Bank Nifty starts trading below 37000 levels with SL of 37500 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