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Nifty Open Interest Put Call ratio fell to 1.35 levels from 1.45 levels -  HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING IS SEEN IN THE NIFTY AND BANK NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 17800 LEVELS​​​​​​​

* Nifty continued its upward journey for the third day in the row , where it gained 52 points to close at 18056 levels.

* Short covering is seen in the Nifty Futures where Open Interest fell by 4% with Nifty rising by 0.29%.

* Short covering is seen in the Bank Nifty Futures too where Open Interest fell by 2% with Bank Nifty rising by 0.25%.

* Nifty Open Interest Put Call ratio fell to 1.35 levels from 1.45 levels. Amongst the Nifty options (13-Jan Expiry), Put writing is seen at 17800-17900 levels, Indicating Nifty is likely to find strong support in the vicinity of 17800 - 17900 levels. On the higher side, an immediate resistance is seen in the vicinity of 18150-18200 levels where we have seen Call writing.

* Long unwinding is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 347 Cr with their Open Interest going down by 14693 contracts.

To Sum It up, Short covering in the Nifty and Bank Nifty futures and Put writing at 17800-17900 levels Indicates that one should continue to remain bullish for the markets.

Therefore, our advise is to remain long with the trailing stop loss of 17800 levels. On the higher side 18150 - 18200 levels will act as a strong resistance.

In the Bank Nifty, our advice is to remain bullish with SL of 38000 levels. On the higher side 38800- 39000 level may act as resistance going forward.

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