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Nifty Open Interest Put call Ratio fell to 1.29 levels - HDFC Securities

F&O HIGHLIGHTS

SHORT BUILD UP WAS SEEN IN THE NIFTY & BANK NIFTY FUTURES

BE BEARISH WITH THE STOP LOSS OF 14900 LEVELS

* Nifty broke the three day winning streak on the back of concern over rising corona cases and ended the day with the losses of 39 points to close at 14835 levels

* Short build up was seen in Nifty Futures’ where Open Interest rose by 8% with Nifty falling by 0.26%.

* Short build up was seen in the Bank Nifty Futures too, where we have seen 2% rise in the Open Interest with Bank Nifty falling by 1%.

* Nifty Open Interest Put call Ratio fell to 1.29 levels from 1.41 levels. Amongst the Nifty options (15-April Expiry), Call writing was seen at 14900-15000 levels, Indicating 14900 level will act as a strong resistance. On the lower side, support is seen around 14500-14600 levels where we have seen Put writing.

* Short build up was seen by FIIS’ in the Index Futures segment where they net sold worth Rs 639 Cr with their Open Interest going up by 7556 contracts.

To Sum It Up, Short build up in the Nifty and Bank Nifty Futures, Call writing at 14900-15000 levels and short build up by the FIIs’ in the Index Futures segment Indicates that one should remain cautious for the markets

Therefore, our advise is to be bearish with the stop loss of 14900 levels. On the lower side 14500- 14600 level will act as a support where Puts have been written

In the Bank Nifty, where we have seen short build up, our advice is to remain bearish with the stop loss of 33000 levels. On the lower side, support is seen in the vicinity of 31800-32000 levels.

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