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Nifty Open Interest Put Call ratio fell to 1.26 levels from 1.36 levels -  HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY AND BANK NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 17600 LEVELS​​​​​​​

* After a dip on Thursday, Nifty resumed its uptrend on Friday, where it gained by 67 points or 0.38% to close at 17813 levels.

* Long build up is seen in the Nifty Futures where Open Interest rose by 1% with Nifty rising by 0.38%.

* Long build up is seen in the Bank Nifty Futures too where Open Interest rose by 5.6% with Bank Nifty rising by 0.67%.

* Nifty Open Interest Put Call ratio fell to 1.26 levels from 1.36 levels. Amongst the Nifty options (13-Jan Expiry), Put writing is seen at 17500-17600 levels, Indicating Nifty is likely to find strong support in the vicinity of 17500 - 17600 levels. On the higher side, an immediate resistance is seen in the vicinity of 17900-18000 levels where we have seen Call writing.

* Short covering is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 579 Cr with their Open Interest going down by 6603 contracts.

To Sum It up, Long build up in the Nifty and Bank Nifty futures, Put writing at 17500-17600 levels and short covering by the FIIS in the Index Futures segment Indicates that one should be remain bullish for the markets.

Therefore, our advise is to accumulate longs with the stop loss of 17600 levels. On the higher side 17900 - 18000 levels will act as a strong resistance.

In the Bank Nifty, which outperformed the Nifty yesterday, our advice is to go long on dips with SL of 37300 levels. On the higher side 38000- 38200 level may act as resistance going forward.

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