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Nifty Open Interest Put Call ratio rose to 1.12 levels from 1.08 levels - HDFC Securities

F&O HIGHLIGHTS

LONG BUILD UP IS SEEN IN THE NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 18000 LEVELS​​​​​​​

* Nifty broke out from four days tight consolidation on Monday where it rose more than 100 points from the intraday low and ended the day with the gains of 151 points to close at 18125 levels.

* Long build up is seen in the Nifty Futures where Open Interest rose by 2% with Nifty rising by 1%.

* Long unwinding is seen in the Bank Nifty Futures where Open Interest fell by 7% with Bank Nifty falling by 0.3%.

* Nifty Open Interest Put Call ratio rose to 1.12 levels from 1.08 levels. Amongst the Nifty options (11-Nov Expiry), Put writing is seen at 17900-18000 levels, Indicating Nifty is likely to find support in the vicinity of 179000 - 18000 levels. On the higher side, an immediate resistance is seen in the vicinity of 18200 - 18300 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 2322 Cr with their Open Interest going up by 3681 contracts.

To Sum It up, Long build up in the Nifty futures, Put writing at 17900 levels and Long build up by FII’s in 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 18000 levels. On the higher side 18200-18300 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long with trailing SL of 39300 levels. On the higher side 40000-40300 level may act as resistance going forward.

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