F&O Action: Futures and Options market cues for trading on February 28

The Nifty 50 put call ratio (PCR) closed at 0.79 for the day.

Following the sharp recovery in the US equity market in yesterday’s trade, the Indian equity market too opened in green in today’s trade. Nifty 50 closed with gains of 410.45 points at 16,658 levels. The overall market was in favour of advances. At close advance to decline ratio stood at 465:25. All sectoral indices ended in green with Nifty Metal and Nifty Realty up by more than 5 per cent. The volatility index, India VIX declined sharply by 16.4 per cent and closed at 26.7 levels. 

Activity on the F&O front for weekly expiry on March 3 shows lower volumes and not much activity. Highest open interest contract of 21113 for Nifty 50 stood at a strike price of 18000. The second-highest call option open interest 19873 for Nifty 50 stood at a strike price of 17200. In terms of the highest addition of open interest in the call options front, it was at 17200 in the last trading session. A total of 11897 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 17000, where 15486 open interest was added today, followed by 17200 where (8989) open interest was added. Highest total put open interest (27088) stood at a strike price of 17000. This is followed by a strike price of 16500, which saw a total put option open interest of 15691 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.79 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 for weekly expiry on March 3 stands at 17150.

Top five call and put open interest with their strike price