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Nifty Open Interest Put Call ratio fell to 0.92 levels from 1.09 levels -  HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP IS SEEN IN THE NIFTY FUTURES

GO LONG IN BANK NIFTY IF IT STARTS TRADING ABOVE 38000 LEVELS.​​​​​​​

* Nifty fell more than two hundred and fifty points from the high and finally ended the day with the losses of 8 points to close at 17102 levels.

* Short build up is seen in the Nifty Futures where Open Interest rose by 5% with Nifty falling by 0.05%. 

* Short build up is seen in the Bank Nifty Futures too where Open Interest rose by 6% with Bank Nifty falling by 0.77%.

* Nifty Open Interest Put Call ratio fell to 0.92 levels from 1.09 levels. Amongst the Nifty options (03-Feb Expiry), Call writing is seen at 17300-17400 levels, Indicating Nifty is likely to find strong resistance around 17300 levels. On the downside, an immediate support is seen in the vicinity of 16900-17000 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 1728 Cr with their Open Interest going up by 15325 contracts. To Sum It up, Short build up in the Nifty Futures, Short build up in the Bank Nifty futures, Call writing at 17300-17400 levels and short build up by the FIIS in the Index Futures segment Indicates that one should be cautious.

Therefore, If our markets opens higher as our SGX Nifty is suggesting, our advise is to go long only If Nifty starts trading above 17300 levels. On the lower side 16900-17000 level will act as a support where we have seen Put writing.

In the Bank Nifty, which is better placed as compared to the Nifty, our advice is to go longs If Bank Nifty starts trading above 38000 levels with SL of 37500 levels.

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