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Nifty Open Interest Put Call ratio fell to 0.96 from 1.12 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE BANK NIFTY FUTURES

HOLD LONGS WITH THE STOP LOSS OF 17900 LEVELS

* Nifty failed to go beyond previous day high on the back of negative global cues and ended the day with the loss of 24.30 points to close at 18044.25 levels.

* Long unwinding is seen in the Nifty Futures where Open Interest rose by 3% with Nifty falling by 0.3%.

* Short build up is seen in the Bank Nifty Futures where Open Interest rose by 6% with Bank Nifty falling by 0.2%.

* Nifty Open Interest Put Call ratio fell to 0.96 from 1.12 levels. Amongst the Nifty options (11-Nov Expiry), Call writing was seen at 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 17800 - 17900 levels where we have seen Puts writing. 

* Long unwinding is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 2262 Cr with their Open Interest going down by 14171 contracts.

To Sum It up, Long unwinding up in the Nifty futures, short build up in the Bank Nifty Futures and Call writing at 18100 -18200 levels Indicates that Indicates that one should be cautious for the markets.

Therefore, our advise is to hold longs with the strict stop loss of 17900 levels. On the higher side 18100-18200 levels will act as a strong resistance.

In the Bank Nifty, our advice is to hold long with the stop loss of 39000 levels. On the higher side 40000-40300 level may act as resistance going forward.

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