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Nifty Open Interest Put Call ratio rose to 1.06 levels from 0.90 levels. -  HDFC Securities 

F&O HIGHLIGHTS

SHORT COVERING WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

GO LONG IN NIFTY IF IT STARTS TRADING ABOVE 17200 LEVELS.​​​​​​​

* Nifty rallied on Wednesday, tracking positive global stocks. The Nifty managed to close above the 16,950 level. Investors keenly awaited the outcome of US Fed policy. All the sectoral indices on the NSE ended in the green. Firmness in banks and IT shares pushed the benchmarks higher. Nifty finally closed up by 1.87% to 16975.35

* Short covering was seen in the Nifty Futures where Open Interest fell by 7.97% with Nifty rising by 1.87%.

* Short covering was also seen in the Bank Nifty Futures where Open Interest fell by 2.26% with Bank Nifty rising by 2.07%.

* Nifty Open Interest Put Call ratio rose to 1.06 levels from 0.90 levels. Amongst the Nifty options (17-Mar Expiry), Call writing is seen at 17300-17400 levels, Indicating Nifty is likely to find strong resistance in the vicinity of 17300 - 17400 levels. On the lower side, an immediate support is seen in the vicinity of 17000-17100 levels where we have seen Put writing .

* Short covering was also seen by FIIS’ in the Index Futures segment where they net bought worth Rs 1823 Cr with their Open Interest going down by 26270 contracts. To Sum It up, Short covering in the Nifty and Bank Nifty Futures, Short covering by FII’s in the Index future’s and Put writing at 17000-17100 levels Indicates optimisms in the market

Therefore, If our markets opens sharpy higher 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 17300-17400 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 startstrading above 36500 levels with SL of 36000 levels.

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