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Nifty Open Interest Put Call ratio remained steady at 1.57 levels -  HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING IS SEEN IN THE NIFTY AND BANK NIFTY FUTURES

ACCUMULATE LONGS ON DECLINE WITH THE TRAILING STOP LOSS OF 17600 LEVELS

* Nifty continued its upward journey for the third day on the row where it gained 180 points on Tuesday to close at 17805, highest close since 17-November 2021.

* Short covering is seen in the Nifty Futures where Open Interest fell by 0.6% with Nifty rising by 1.02%.

* Short covering is seen in the Bank Nifty Futures too where Open Interest fell by 9% with Bank Nifty rising by 1.15%.

* Nifty Open Interest Put Call ratio remained steady at 1.57 levels. Amongst the Nifty options (06-Jan Expiry), Put writing is seen at 17500-17600 levels, Indicating Nifty is likely to find 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 703 Cr with their Open Interest going down by 7148 contracts.

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

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

In the Bank Nifty, our advice is to go long on dips with SL of 36300 levels. On the higher side 37000- 37200 level may act as resistance going forward.

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