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Nifty Open Interest Put Call ratio rise to 1.38 levels from 1.30 levels -  HDFC Securities

F&O HIGHLIGHTS

SHORT COVERING IS SEEN IN THE NIFTY FUTURES

REMAIN BULLISH WITH STOP LOSS OF 14900

* Nifty ended higher by 269.25 points lifted mainly due to financial sector to close at 15175.30 levels.

* Short covering was seen in Nifty Futures’ where Open Interest fell by 1% with Nifty rising by 2%.

* Long build up was seen in the Bank Nifty Futures where we have seen 24% rise in the Open Interest with Bank Nifty closed 4% higher.

* Nifty Open Interest Put Call ratio rise to 1.38 levels from 1.30 levels. Amongst the Nifty options (27-May), Put writing was seen 15000-14900 levels, Indicating 14900 level to act as a support going forward. On the higher side, immediate resistance is seen around 15300-15400 level where calls have been written.

* Short covering seen by FIIS’ in the Index Futures segment where they net bought worth Rs 1481 Cr with their Open Interest going down by 3788 contracts.

To Sum It Up, Short covering in the Nifty Futures, long build up in the Bank Nifty futures, Put writing at 15000-14900 levels and Short covering up by FII’s in the Index future segment indicates that one should be optimistic for the market.

Therefore, our advise is remain bullish with the strict SL of 14900 levels. On the higher side resistance is seen around 15300-15400 levels where Calls have been written

In the Bank Nifty our advice is to remain bullish with the stop loss of 34200 levels. On the higher side, resistance is seen in the vicinity of 35300-35600 levels

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