IGI Logo

Nifty Open Interest Put Call ratio fell to 1.10 levels from 1.32 levels- HDFC Securities 

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE NIFTY AND BANKNIFTY FUTURES

CREATE SHORT POSITION WITH STOP LOSS OF 14950

*Nifty witnessed selling pressure throughout the day and ended lower by 154 points on the back of weak global cues to close at 14690.70 levels

*Short buildup was seen in Nifty Futures’ where Open Interest rose by 1.6% with Nifty falling by 1%. Nifty Future premium fell to 61.60 from 68.45 points in the previous session.

*Short build was also seen in the Bank Nifty Futures where we have seen 3% rise in the Open Interest with Bank Nifty closed 1.7% lower.

*Nifty Open Interest Put Call ratio fell to 1.10 levels from 1.32 levels. Amongst the Nifty options (08-April), Call writing was seen 14900-15000 levels, Indicating 14900-15000 level to act as a resistance going forward. On the lower side, immediate support is seen around 14500-14600 level where puts have been written.

*Short build up is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 2449 Cr with their Open Interest going up by 10673 contracts.

To Sum It Up, Short build up in the Nifty and in Bank Nifty Futures, fall in nifty open interest PCR on the back of call writing at 14900-15000 levels and short build up by FIIS’ in the index segment indicates that one should remain cautious for the market.

Therefore, our advise is to create short position with the strict SL of 14950 levels. On the lower side support is seen around 14500-14600 levels where Puts have been written

In the Bank Nifty our advice is to create short position with the stop loss of 33800 levels. On the lower side, support is seen around 33000 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