IGI Logo

Nifty Open Interest Put Call ratio fell to 1.01 levels from 1.06 levels - HDFC Securities

UNWINDING WAS SEEN IN THE BANK NIFTY FUTURES

GO LONG IN NIFTY IF IT STARTS TRADING ABOVE 17200 LEVELS.​​​​​​​

* The Nifty recovered from steep losses in early trade and ended with modest cuts on Tuesday. The Nifty closed near the 17,100 mark after hitting the day's low of 16,843.80 in initialtrade. Selling was broad based with metals, PSU banks and realty shares declining the most. Nifty finally closed down by 114.45 points or 0.67% to close at 17092.20 levels.

* Short built up was seen in the Nifty Futures where Open Interest rose by 2.24% with Nifty falling by 0.67%.

* On the other hand, long winding was seen in the Bank Nifty Futures where Open Interest fell marginally by 0.78% with Bank Nifty falling by 0.87%.

* Nifty Open Interest Put Call ratio fell to 1.01 levels from 1.06 levels. Amongst the Nifty options (24-Feb Expiry), Call writing is seen at 17300-17400 levels, Indicating Nifty is likely tofind strong resistance in the vicinity of 17300 - 17400 levels. On the lower side, an immediate support is seen in the vicinity of 17000-17100 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 1368 Cr with their Open Interest going up by 18888 contracts.

To Sum It up, winding up of positions in the Bank Nifty Future’s(No short build up) & Put writing at 17000-17100 levels Indicates that downside is limited in the markets.

Therefore, our advise is to go long If Nifty starts trading above 17200 levels with SL of 17000 levels. On the higher side 17350-17400 level will act as a resistance where we haveseen Call writing.

In the Bank Nifty, our advice is to go longs If Bank Nifty starts trading above 37500 levels with SL of 36800 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