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Nifty Open Interest Put Call ratio fell to 0.86 levels from 0.98 levels - HDFC Securities

F&O HIGHLIGHTS

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

REMAIN CAUTIOUS TILL NIFTY CLOSES ABOVE 18300 LEVELS

* Nifty fell more than one fifty points from the intraday high and finally ended the day with the losses of 57 points to close at 18211 levels.

* Short build up is seen in the Nifty Futures where Open Interest rose by 4% with Nifty falling by 0.31%.

* Short build up is seen in the Bank Nifty Futures too where Open Interest rose by 28% with Bank Nifty falling by 1%.

* Nifty Open Interest Put Call ratio fell to 0.86 levels from 0.98 levels. Amongst the Nifty options (28-Oct Expiry), Put writing is seen at 18000-18100 levels, Indicating Nifty is likely to find support in the vicinity of 18000 - 18100 levels. On the higher side, an immediate resistance is seen in the vicinity of 18300 - 18400 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 2552 Cr with their Open Interest going up by 19229 contracts.

To Sum It up, Short build up in the Nifty futures, Short build up in the Bank Nifty Futures, Call writing at 18300-18400 levels and FIIs selling in the Index Futures Indicates that Indicates that one should be cautious for the markets

Therefore, our advise is to remain cautious till Nifty closes above 18300 levels. On the lower side 18000-18100 levels will act as a strong support.

In the Bank Nifty, where we have seen short build up, our advice is to remain cautious till it closes above 41300 levels. On the lower side 40500-40700 level may act as support going forward

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