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Nifty Open Interest Put Call ratio increased sharply to 0.98 levels from 0.82 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING IS SEEN IN THE NIFTY FUTURES

ACCUMULATE LONGS ON DECLINE WITH THE STOP LOSS OF 18100 LEVELS

* Nifty gained sharply on the back of strong global cues and ended the day with the gains of 143 points to close at 18268 levels.

* Short covering is seen in the Nifty Futures where Open Interest fell by 2% with Nifty rising by 0.79%.

* On the other hand, Long build up is seen in the Bank Nifty Futures where Open Interest rose by 6% with Bank Nifty rising by 0.11%.

* Nifty Open Interest Put Call ratio increased sharply to 0.98 levels from 0.82 levels. Amongst the Nifty options (28-Oct Expiry), Put writing is seen at 18000-18200 levels, Indicating Nifty is likely to find support in the vicinity of 18100 - 18200 levels. On the higher side, an immediate resistance is seen in the vicinity of 18300 - 18400 levels where we have seen Call writing.

* Short build up is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 340 Cr with their Open Interest going up by 2396 contracts.

To Sum It up, Long build up in the Bank Nifty futures, Short covering in the Nifty Futures and Put writing at 18000-18200 levels Indicates that Indicates that one should be optimistic for the markets.

Therefore, our advise is to accumulate longs on decline with the stop loss of 18100 levels. On the higher side 18300-18400 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long If Bank Nifty sustains above 41500 levels. On the downside Bank Nifty is likely to find support in the vicinity of 40700-41000 levels

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