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Nifty Open Interest Put Call ratio rose to 0.84 from 0.67 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE BANK NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 17350 LEVELS​​​​​​​

* Nifty reversed the Five days losing streak with modest gains and ended higher with the gains of 60 points to close at 17495.25 levels.

* Short covering is seen in the Nifty Futures where Open Interest fell by 0.3% with Nifty rising by 0.4%.

* Minor long build up is seen in the Bank Nifty Futures where Open Interest rose by 3% with Bank Nifty rising by 0.3%.

* Nifty Open Interest Put Call ratio rose to 0.84 from 0.67 levels. Amongst the Nifty options (25-Nov Expiry), Put writing is seen at 17400-17300 levels, Indicating Nifty is likely to find support in the vicinity of 17300 - 17400 levels. On the higher side, an immediate resistance is seen in the vicinity of 17600 - 17700 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 297 Cr with their Open Interest going up by 7807 contracts.

To Sum It up, short Covering in the Nifty futures, Long build up in the Bank Nifty Futures, Call writing at 17400-17300 levels and Long build up by FII’s in the index futures segment Indicates that Indicates that one should be optimistic for the markets.

Therefore, our advise is to accumulate longs with the stop loss of 17350 levels. On the higher side 17600-17700 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long with trailing SL of 37100 levels. On the higher side 37500-37800 level may act as resistance going forward.

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