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Nifty Open Interest Put Call ratio surged to 1.57 from 1.41 level -  HDFC Securities

F&O HIGHLIGHTS

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

ACCUMULATE LONGS ON DECLINE WITH THE STOP LOSS OF 17400 LEVELS​​​​​​​

* On the first day of the new year, Nifty surged 272 points or 1.57% to close at 17626 levels, highest close since 18-November 2021.

* Long build up is seen in the Nifty Futures where Open Interest rose by 3% with Nifty rising by 1.57%.

* Long build up is seen in the Bank Nifty Futures too where Open Interest rose by 4% with Bank Nifty rising by 2.6%.

* Nifty Open Interest Put Call ratio surged to 1.57 from 1.41 level. Amongst the Nifty options (06-Jan Expiry), Put writing is seen at 17400-17500 levels, Indicating Nifty is likely to find support in the vicinity of 17400 - 17500 levels. On the higher side, an immediate resistance is seen in the vicinity of 17750-17800 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 662 Cr with their Open Interest going up by 2762 contracts.

To Sum It up, Long build up in the Nifty futures, Long build up in the Bank Nifty Futures, rise in the Put call ratio on the back of Put writing at 17400-17500 levels and long build up by the FIIs in the Index futures segment Indicates that Indicates that one should continue to remain bullish for the markets.

Therefore, our advise is to accumulate longs on dips with the stop loss of 17400 levels. On the higher side 17750 - 17800 levels will act as a strong resistance

In the Bank Nifty, our advice is to go long on dips with trailing SL of 35800 levels. On the higher side 37000- 37200 level may act as resistance going forward.

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