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Nifty Open Interest Put Call ratio rose to 1.45 levels from 1.46 levels  -  HDFC Securities

F&O HIGHLIGHTS

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

REMAIN LONG WITH THE TRAILING STOP LOSS OF 17800 LEVELS

* Nifty continued its upward journey for the second day in the row , where it gained by 191 points or 1.07% to close at 18003 levels.

* Long build up is seen in the Nifty Futures where Open Interest rose by 3% with Nifty rising by 1.1%.

* Long build up is seen in the Bank Nifty Futures too where Open Interest rose by 8% with Bank Nifty rising by 1.6%.

* Nifty Open Interest Put Call ratio rose to 1.45 levels from 1.46 levels. Amongst the Nifty options (13-Jan Expiry), Put writing is seen at 17700-17800 levels, Indicating Nifty is likely to find strong support in the vicinity of 17700 - 17800 levels. On the higher side, an immediate resistance is seen in the vicinity of 18050-18100 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 539 Cr with their Open Interest going up by 8015 contracts.

To Sum It up, Long build up in the Nifty and Bank Nifty futures and rise in the Put Call ratio on the back of Put writing at 17700-17800 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 17800 levels. On the higher side 18050 - 18100 levels will act as a strong resistance.

In the Bank Nifty, which outperformed the Nifty yesterday, our advice is to go long on dips with SL of 37500 levels. On the higher side 38500- 39000 level may act as resistance going forward.

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