IGI Logo

Nifty Open Interest Put Call ratio rose marginally to 1.05 from 1.01 level -  HDFC Securities

F&O HIGHLIGHTS

LONG BUILT UP WAS SEEN IN THE NIFTY FUTURES

ACCUMULATE LONGS ON DECLINE WITH THE STOP LOSS OF 17000 LEVELS

* The Nifty ended with modest gains on Thursday. The Nifty closed above the 17,050 mark after hitting the day's high of 17,118.65 in afternoon trade. Realty, PSU banks and FMCG shares were in demand. Trading was volatile due to expiry of weekly index options on the NSE. Nifty Finally closed up by 117.15 points at 17072.60.

* Built up of long positions was seen in the Nifty Futures where Open Interest rose by 1.85% with Nifty rising by 0.69%.

* Short covering was seen in the Bank Nifty Futures where Open Interest fell by 4.63% with Bank Nifty rising by 0.46%.

* Nifty Open Interest Put Call ratio rose marginally to 1.05 from 1.01 level. Amongst the Nifty options (30-Dec Expiry), Put writing is seen at 17000 levels, Indicating Nifty is likely to find support in the vicinity of 16900 - 17000 levels. On the higherside, an immediate resistance are seen in the vicinity of 17200 - 17300 levels where we have seen Call writing.

* Long built up was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 989 Cr with their Open Interest going up by 9070 contracts. To Sum It up, Long built up in the Nifty futures, Short covering in the Bank Nifty Futures, Long positions by FII’s in the Index futures and Put writing at 17000 levels Indicates that Indicatesthat one should remain optimistic on the markets.

Therefore, our advise is to accumulate longs with the stop loss of 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 34700 levels. On the higher side 35500 - 36000 level may act as resistance going forward.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer