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Nifty Open Interest Put Call ratio remained steady at 1.56 levels -  HDFC Securities

F&O HIGHLIGHTS

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

ACCUMULATE LONGS ON DECLINE WITH THE TRAILING STOP LOSS OF 17700 LEVELS​​​​​​​

* Nifty continued its upward journey for the fourth day on the row , despite weak Asian market cues, where it gained 120 points to close at 17925.

* Long build up is seen in the Nifty Futures where Open Interest rose by 1% with Nifty rising by 0.7%.

* Long build up is seen in the Bank Nifty Futures too where Open Interest rose by 2% with Bank Nifty rising by 2.32%.

* Nifty Open Interest Put Call ratio remained steady at 1.56 levels. Amongst the Nifty options (06-Jan Expiry), Put writing is seen at 17700-17700 levels, Indicating Nifty is likely to find support in the vicinity of 17700 - 17800 levels. On the higher side, an immediate resistance is seen in the vicinity of 18000-18100 levels where we have seen Call writing.

* Long build up is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 476 Cr with their Open Interest going up by 1964 contracts.

To Sum It up, Long build up in the Nifty futures, Long build up in the Bank Nifty Futures, Put writing at 17700-17800 levels and long build up by the FIIs in the Index futures segment Indicates that Indicates that one should continue to remain bullish for the markets.

Therefore, If Nifty opens sharply lower as SGX Nifty is suggesting, our advise is to use that decline to accumulate longs with the stop loss of 17700 levels. On the higher side 18000 - 18100 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long on dips with SL of 37000 levels. On the higher side 38000- 38200 level may act as resistance going forward.

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