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Nifty Open Interest Put Call ratio fell to 1.28 from 1.42 level -  HDFC Securities

F&O HIGHLIGHTS

MINOR LONG BUILT UP WAS SEEN IN THE BANK NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 17400 LEVELS​​​​​​​

* Nifty snapped three-day rising streak and ended with minor losses on Friday, tracking negative global cues. Investors booked profits after the domestic equity benchmarks rose about 3.60% in the past three sessions. The Nifty settled above 17,500 mark after hitting the day's low of 17,405.25 in afternoon trade. PSU banks, realty and media shares advanced. Nifty Finally closed down marginally by 5.55 points at 17511.30.

* Winding up of positions was seen in the Nifty Futures where Open Interest fell by 3.74% with Nifty falling by 0.03%.

* Marginal build up was seen in the Bank Nifty Futures where Open Interest rose by 2% with Bank Nifty rose by 0.06%.

* Nifty Open Interest Put Call ratio fell to 1.28 from 1.42 level. Amongst the Nifty options (16-Dec Expiry), Put writing is seen at 17400 levels, Indicating Nifty is likely to find support in the vicinity of 17300 - 17400 levels. On the higher side, an immediate resistance are seen in the vicinity of 17600 - 17700 levels where we have seen Call writing.

* Unwinding was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 1323 Cr with their Open Interest going down by 14870 contracts.

To Sum It up, minor long build up in the Bank Nifty Futures and Put writing at 17400 levels Indicatesthat Indicatesthat one should be optimistic on the markets.

Therefore, our advise is to accumulate longs with the stop loss of 17400 levels. On the higher side 17600 - 17700 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long on dips with trailing SL of 36500 levels. On the higher side 38000 - 38500 level may act as resistance going forward.

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