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Nifty Open Interest Put Call ratio rise to 1.01 from 0.89 level -  HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY FUTURES

BUY ON DIPS FOR NIFTY WITH THE STOP LOSS OF 17000 LEVELS

* Nifty ended with strong gains on Wednesday, tracking strong global cues. Positive domestic economic data also boosted sentiment. The Nifty managed to close above the 17,150 level after hitting a day's low of 17,064.25 in mid afternoon trade. Pharma and healthcare stocks declined while banks and metal shares advanced. Nifty finally closed up 1.08% at 17166.90

* Long build up was seen in the Nifty Futures where Open Interest rose by 3.57% with Nifty rising by 1.08%.

* Short covering was seen in the Bank Nifty Futures where Open Interest fell by 5.23% with Bank Nifty rising by 1.88%.

* Nifty Open Interest Put Call ratio rise to 1.01 from 0.89 level. Amongst the Nifty options (02-Dec Expiry), Put writing is seen at 17000 levels, Indicating Nifty is likely to find support in the vicinity of 17000 - 17100 levels. On the higher side, an immediate resistance is seen in the vicinity of 17200 - 17300 levels where we have seen Call writing.

* Long build up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 930 Cr with their Open Interest going up by 3129 contracts.

To Sum It up, Long build up in the Nifty futures, short covering in the Bank Nifty Futures and Put writing at 17000 levels Indicates that Indicates that one should be optimistic for the markets.

Therefore, our advise is to accumulate longs on dips by keeping stop loss at 17000 levels. On the higher side 17200 - 17300 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long on dips with trailing SL of 36000 levels. On the higher side 36700 - 37000 level may act as resistance going forward.

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