F&O Market Watch: What does the Futures and Options Market suggest about trade on February 23?
The Nifty 50 put call ratio (PCR) closed at 0.88 for the day.
Nifty saw a short-buildup on Monday, where price slipped by 0.12 per cent and OI increased by 1.40 per cent, as Nifty Bank created a short-build up, tumbled by 0.38 per cent and OI increased by 8.54 per cent.
Nifty
Nifty Bank
The Nifty 50 put call ratio (PCR) closed at 0.88 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 February 29 stands at 21150.
Call Options Data
In the weekly options data analysis, the 23000 strike emerges as a significant resistance level for the Nifty in the short term, boasting the highest Call open interest at 2,52,866 contracts. This level is crucial for traders to monitor. Subsequently, the 22500 strike holds notable open interest with 1,31,604 contracts, while the 22300 strike follows closely with 1,10,676 contracts.
Observing Call writing activities, there is substantial activity at the 23100 strike, evidenced by the addition of 63,901 contracts. Additionally, the 22300 and 22500 strikes witness meaningful Call writing, accumulating 58,212 and 54,714 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 22100 strike, shedding 9,350 contracts. The 22000 and 21950 strikes also experience significant Call unwinding, relinquishing 8,051 and 2,703 contracts, respectively. This unwinding could indicate a weakening of resistance at these levels.
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Put Options Data
In the options market for Nifty, notable open interest on the Put side is concentrated at the 21000 strike, making it a crucial support level, evidenced by 1,52,138 contracts. The subsequent significant support areas include the 22000 strike with 1,48,339 contracts and the 21500 strike with 1,06,095 contracts.
There was substantial Put writing at the 21200 strike, where 30,180 contracts were added. Additionally, meaningful Put writing activity was observed at the 22200 and 22300 strikes, contributing 29,722 and 25,582 contracts, respectively.
Conversely, Put unwinding took place at the 20700 strike, witnessing a reduction of 5,627 contracts. The 21900 strike and 20000 strike also experienced Put unwinding 3,382 and 3,185 contracts, respectively.
Long build-up Stocks
Following scrips were among stocks that had a long build-up. A rise in open interest (OI) and price suggests a concentration of long holdings.
|
SYMBOL
|
PRICE
|
OI
|
PRICE Change
|
OI Change
|
|
IDEA
|
17.55
|
2,21,92,80,000
|
7.01 per cent
|
8.47 per cent
|
|
ASTRAL
|
2079.35
|
40,98,289
|
5.60 per cent
|
27.71 per cent
|
|
BEL
|
205.55
|
12,83,69,700
|
5.19 per cent
|
2.63 per cent
|
|
GODREJPROP
|
2467.20
|
50,11,725
|
3.02 per cent
|
0.13 per cent
|
|
INDHOTEL
|
594.00
|
1,85,94,000
|
2.76 per cent
|
14.24 per cent
|
Short build-up Stocks
A short build-up was seen in these stocks. An increase in OI along with a fall in price points to a build-up of short positions.
|
SYMBOL
|
PRICE
|
OI
|
PRICE Change
|
OI Change
|
|
BANKBARODA
|
269.00
|
14,70,57,300
|
-2.47 per cent
|
1.19 per cent
|
|
HINDPETRO
|
527.50
|
3,59,37,000
|
-2.44 per cent
|
1.32 per cent
|
|
IOC
|
175.95
|
17,65,82,250
|
-2.41 per cent
|
2.30 per cent
|
|
MFSL
|
930.45
|
98,83,200
|
-2.34 per cent
|
1.59 per cent
|
|
COROMANDEL
|
1080.40
|
17,56,300
|
-1.79 per cent
|
2.32 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.