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Nifty Open Interest Put Call ratio rose to 1.02 levels from 0.98 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY AND BANK NIFTY FUTURES

GO LONG ONLY IF NIFTY TRADES ABOVE 16700 WITH THE STOPL LOSS OF 16500 .​​​​​​​

* Nifty ended on a strong note on the back of positive global cues, where it rose by 410.45 points or 2.53% to close at 16658.40 levels.

* Long build up is seen in the Nifty Futures where Open Interest rose by 5.21% with Nifty futures rising by 2.36%.

* Long build up is also seen in the Bank Nifty Futures where Open Interest rose by 18.71% with Bank Nifty futures rising by 3.41%.

* Nifty Open Interest Put Call ratio rose to 1.02 levels from 0.98 levels. Amongst the Nifty options (03-Mar Expiry), Call writing is seen at 16800-16700 levels, Indicating Nifty is likely to find strong resistance in the vicinity of 16800 - 16700 levels. On the lower side, an immediate support is seen in the vicinity of 16500-16400 levels where we have seen Put writing .

* Short covering is seen by FIIS’ in the Index Futures segment where they net bought worth Rs 3555 Cr with their Open Interest going down by 19589 contracts. To Sum It up, long build up in the Nifty and Bank Nifty Futures, Put writing at 16500-16400 levels and Short covering by FII’s in Index futures segment Indicates that downside is limited in the markets

Therefore, our advise is to go long if Nifty trades above 16700 with SL of 16500 levels. On the higher side 16800 level will act as a resistance where we have seen Call writing. In the Bank Nifty, which outperformed the Nifty on Friday, our advice is to hold longs in Bank Nifty with SL of 36200 levels.

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