F&O Action: Futures and Options market cues for trade on January 19

Max pain at the end of today's trade stands at 18200.

It is rightly said that when the market goes up it takes a staircase, however, when it comes down it takes the elevator. In the same way, Nifty 50 fell by 1.07 per cent in today’s trade and closed at 18,113 down by 195 points. This fall wiped out the last four days of gain. Bank index was the only one to end in the positive and rest all sectoral indices closed in negative. Fear index, Nifty VIX inched up by 6.05 per cent and closed at 17.78.  

Activity on the F&O front for weekly expiry on January 20 shows 18300 to act as a strong resistance now. Highest open interest contract of 154679 stood at this strike price. The second-highest call option open interest 129103 for Nifty 50 stood at a strike price of 18400. In terms of the highest addition of open interest in the call options front, it was at 18300 in the last trading session. A total of 59831 open interest was added at this strike price.  

In terms of put activity, the highest put writing was seen at a strike price of 17800 (5725) open interest added on January 18, followed by 17700 where (2704) open interest was added. Highest total put open interest (86166) stood at a strike price of 17500. This is followed by a strike price of 18000, which saw a total put option open interest of 85807 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.59 for the day. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish. 

Max pain at the end of today's trade stands at 18200.