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Nifty Open Interest Put Call ratio rose to 0.90 levels from 0.75 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP WAS SEEN IN THE BANK NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 17800 LEVELS​​​​​​​

* The Nifty surged on Monday, snapping the three-day losing streak. The gain were supported by banks, IT, metal, realty and telecom stocks. All the sectoral indices on the NSE ended in the green. Positive global cues boosted sentiment. Nifty ended the day with the gains of 258 points to close at 17929 levels.

* Minor unwinding seen in the Nifty Futures where Open Interest fell marginally by 0.01% with Nifty rising by 1.46%.

* Long build up is seen in the Bank Nifty Futures where Open Interest rose by 1.75% with Bank Nifty rising by 1.66%.

* Nifty Open Interest Put Call ratio rose to 0.90 levels from 0.75 levels. Amongst the Nifty options (03-Nov Expiry), Put writing is seen at 17800 levels, Indicating Nifty is likely to find support in the vicinity of 17700 - 17800 levels. On the higher side, an immediate resistance is seen in the vicinity of 18000 - 18100 levels where we have seen Call writing.

* long build up was seen by FIIS’ in the Index Futures segment where they net bough worth Rs 58 Cr with their Open Interest going up by 1978 contracts.

To Sum It up, Long build up in the Bank Nifty Futures and Put writing at 17700 - 17800 levels Indicates that Indicates that one should be optimistic for the markets.

Therefore, our advise is to accumulate longs with the stop loss of 17800 levels. On the higher side 18000-18100 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long with trailing SL of 39500 levels. On the higher side 40500-41000 level may act as resistance going forward.

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