F&O Action: Futures and Options market cues for trading on March 4

Activity in the F&O market for the weekly expiry on March 10 shows 15000 to act as support now.

On Thursday, although the start of the day was on a positive note, India’s equity benchmark indices ended lower. During the first half of the trading, markets went higher, but they failed to hold their initial gains in the second half and ended the day in the red. This was amid geopolitical tension between Russia and Ukraine. Furthermore, the sentiments impacted as the US Federal Reserve Chair Jerome Powell signified that despite uncertainties amid the Russia-Ukraine crisis, it would begin to raise rates this month. The US Fed Chair proposed a 25 basis point rate hike during the next Fed meeting. 

In the end, the Sensex was down 366.22 points or 0.66 per cent at 55,102.68, and the Nifty was down 108 points or 0.65 per cent at 16,498. 

Activity on the F&O front for weekly expiry on March 10 shows the highest open interest contract of 62900 stood at 19800 strike price. The second-highest call option open interest 49031 for Nifty 50 stood at a strike price of 17000. In terms of the highest addition of open interest in the call options front, it was at 19800 in the last trading session. A total of 56013 open interest was added at this strike price. 

In terms of put activity, the highest put writing was seen at a strike price of 15000, where 23501 open interest was added today, followed by 15500 strike price where 18291 open interest was added. Highest total put open interest (36592) stood at a strike price of 15000. This is followed by a strike price of 16000, which saw a total put option open interest of 36365 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.55 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 10 stands at 16600.

 Top five call and put open interest with their strike price