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Nifty Open Interest Put Call ratio rose to 1.45 levels from 1.35 levels  -  HDFC Securities

F&O HIGHLIGHTS

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

ACCUMULATE LONGS WITH THE STOP LOSS OF 18000 LEVELS

* Nifty continued its upward journey for the four days on the trot, where it gained by 157 points or 0.87% on Wednesday to close at 18212 levels.

* Long build up is seen in the Nifty Futures where Open Interest rose by 0.45% with Nifty rising by 0.87%.

* Long build up is seen in the Bank Nifty Futures too where Open Interest rose by 2% with Bank Nifty rising by 0.74%.

* Nifty Open Interest Put Call ratio rose to 1.45 levels from 1.35 levels. Amongst the Nifty options (13-Jan Expiry), Put writing is seen at 18000-18100 levels, Indicating Nifty is likely to find strong support in the vicinity of 18000 - 18100 levels. On the higher side, an immediate resistance is seen in the vicinity of 18400-18500 levels where we have seen Call writing.

* Short build up is seen by FIIS’ in the Index Futures segment where they net sold worth Rs 142 Cr with their Open Interest going up by 9333 contracts.

To Sum It up, Long build up in the Nifty and Bank Nifty futures and rise in the Nifty Open Interest Put Call Ratio on the back of Put writing at 18000-18100 levels Indicates that one should continue to remain bullish for the markets.

Therefore, our advise is to remain long with the trailing stop loss of 18000 levels. On the higher side 18400 - 18500 levels will act as a strong resistance.

In the Bank Nifty, our advice is to go long on dips with SL of 38000 levels. On the higher side 39000- 39300 level may act as resistance going forward.

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