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Nifty Open Interest Put Call ratio rose to 1.25 from 1 level -  HDFC Securities

F&O HIGHLIGHTS

LONG BUILT UP WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

ACCUMULATE LONGS WITH THE STOP LOSS OF 17000 LEVELS

* Nifty reversed from early lows and ended with modest gains on Monday. Investors factored the low mortality rate of the omicron Covid-19 variant. Pharma and healthcare stocks were in demand. Media and FMCG stocks were under pressure. The Nifty settled above the 17,000 mark after hitting the day's low of 16,833.20 in early trade. Nifty Finally closed up by 82.50 points at 17086.25.

* Built up of long positions was seen in the Nifty Futures where Open Interest rose by 3.43% with Nifty rising by 0.49%.

* Long build up was also seen in the Bank Nifty Futures where Open Interest rose by 9.08% with Bank Nifty rising by 0.58%.

* Nifty Open Interest Put Call ratio rose to 1.25 from 1 level. Amongst the Nifty options (30-Dec Expiry), Put writing is seen at 17000 levels, Indicating Nifty is likely to find support in the vicinity of 16900 - 17000 levels. On the higherside, an immediate resistance are seen in the vicinity of 17200 - 17300 levels where we have seen Call writing.

* Short covering was seen by FIIS’ in the Index Futures segment where they net bought worth Rs 55 Cr with their Open Interest going down by 2066 contracts.

To Sum It up, Long Built in the Nifty & Bank futures, and Put writing at 17000 levels Indicatesthat Indicates that one should be optimistic on the markets.

Therefore, our advise is to accumulate longs with the stop loss of 17000 levels. On the higher side 17200 - 17300 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long with trailing SL of 34500 levels. On the higher side 35500 - 36000 level may act as resistance going forward.

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