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Nifty Open Interest Put Call ratio fell to 1.06 levels from 1.10 levels -  HDFC Securities

F&O HIGHLIGHTS

LONGBUILT UP WAS SEEN IN THE BANK NIFTY FUTURES​​​​​​ 

IF NIFTY HOLDS ABOVE 17000 LELELS TRADERS CAN CREATE LONG POSITIONS WITH SL OF 16900

* Nifty declined for the fourth consecutive session on Monday. The Nifty settled above the 17,200 mark after hitting the day's low of 17,070.70 in initial trade. Banks stocks buckedweak market trend. On the other hand, metals, pharma and realty shares tumbled. The ongoing Russia-Ukraine conflict, firm crude oil prices and relentless selling by foreignportfolio investors (FPIs) continued to put pressure on domestic shares. Nifty finally closed down by 69.75 points or 0.40% to close at 17206.65 levels.

* Long Unwinding was seen in the Nifty Futures where Open Interest fell by 1.50% with Nifty falling by 0.40%.

* On the other hand, Long build up was seen in the Bank Nifty Futures where Open Interest rose by 3.56% with Bank Nifty rising by 0.23%.

* Nifty Open Interest Put Call ratio fell to 1.06 levels from 1.10 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 16900-17000 levels where we have seen Put writing .

* Unwinding of positions was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 217 Cr with their Open Interest going down by 2901 contracts. To Sum It up, long built up in the Bank Nifty Futures and Put writing at 16900 - 17000 levels Indicates that Nifty is likely to find support in the vicinity of 16900-17000 levels

Therefore, If our markets opens sharpy lower as our SGX Nifty is suggesting, our advise is to go long If Nifty starts trading above 17000 levels with SL of 16900 levels. On the higherside 17300-17400 level will act as a resistance where we have seen Call writing. In the Bank Nifty, which outperformed the Nifty yesterday, our advice is to go longs If Bank Nifty starts trading above 37000 levels (after market opening) with SL of 36500 levels

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