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Nifty Open Interest Put Call ratio rose to 0.85 levels from 0.67 levels -  HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE BANK NIFTY FUTURES

GO LONG IN BANK NIFTY IF IT STARTS TRADING ABOVE 37500 LEVELS.

* Nifty broke the five day losing streak , where it rose by 129 points or 0.75% to close at 17278 levels.

* Short covering is seen in the Nifty Futures where Open Interest fell by 0.7% with Nifty rising by 0.75%.

* On the other hand, Long build up is seen in the Bank Nifty Futures where Open Interest rose by 2% with Bank Nifty rising by 2%.

* Nifty Open Interest Put Call ratio rose to 0.85 levels from 0.67 levels. Amongst the Nifty options (27-Jan Expiry), Call writing is seen at 17400-17500 levels, Indicating Nifty is likely to find strong resistance in the vicinity of 17400 - 17500 levels. On the lower side, an immediate support is seen in the vicinity of 17000-17100 levels where we have seen Put writing .

* Short build up is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 156 Cr with their Open Interest going up by 20333 contracts. To Sum It up, Short covering in the Nifty Futures, Long build up in the Bank Nifty futures, Put writing at 17000-17100 levels Indicates that downside is limited in the markets.

Therefore, If our markets opens sharpy lower as our SGX Nifty is suggesting, our advise is to go long If Nifty starts trading above 17200 levels with SL of 17000 levels. On the higher side 17350-17400 level will act as a resistance where we have seen Call writing. In the Bank Nifty, which outperformed the Nifty yesterday, our advice is to go longs If Bank Nifty starts trading above 37500 levels with SL of 36800 levels.

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