F&O Market Watch: What does the Futures and Options Market suggest about trade on February 29?

F&O Market Watch: What does the Futures and Options Market suggest about trade on February 29?

Prajwal Wakhare
/ Categories: Trending, Options

The Nifty 50 put call ratio (PCR) closed at 0.61 for the day.

Nifty saw a long-buildup on Monday, where price jumped by 0.29 per cent and OI increased by 17.30 per cent, as Nifty Bank created a long-build up, soared by 0.58 per cent and OI increased by 10.24 per cent.

Nifty

Screenshot-2024-02-29-171059

Nifty Bank

Screenshot-2024-02-29-171106
The Nifty 50 put call ratio (PCR) closed at 0.61 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 7, 2024 stands at 22000.

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 85,661 contracts. This level is crucial for traders to monitor. Subsequently, the 22000 strike holds notable open interest with  73,318 contracts, while the 22200 strike follows closely with 67,650 contracts.

Observing Call writing activities, there is substantial activity at the 23000 strike, evidenced by the addition of 58,953 contracts. Additionally, the 22700 and 22800 strikes witness meaningful Call writing, accumulating 36,705 and 36,638 contracts, respectively. These levels suggest potential resistance zones.

On the other hand, notable Call unwinding is observed at the 23450 and 20550 strike, shedding 19 and 3 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 88,963 contracts. The subsequent significant support areas include the 22000 strike with 70,384 contracts and the 21800 strike with 60,305 contracts.

There was substantial Put writing at the 21000 strike, where 66,277 contracts were added. Additionally, meaningful Put writing activity was observed at the 21800 and 20000 strikes, contributing 41,818 and 41,551 contracts, respectively.

Conversely, Put unwinding took place at the 22400 strike, witnessing a reduction of 195 contracts. The 22700 strike and 22450 strike also experienced Put unwinding 142 and 49 contracts, respectively.

Screenshot-2024-02-29-170827

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

Berger Paints India Ltd

614.70

1,95,21,480

10.00 per cent

32.19 per cent

Hindustan Copper Ltd.

270.00

4,48,69,800

6.36 per cent

38.99 per cent

Shriram Finance Ltd

2434.45

79,06,500

3.90 per cent

11.43 per cent

REC Limited

442.50

5,18,90,000

3.61 per cent

19.50 per cent

Chambal Fertilisers and Chemicals Ltd

356.00

1,23,55,700

3.56 per cent

32.44 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

Aditya Birla Fashion and Retail Ltd

224.80

5,79,69,600

-3.08 per cent

47.28 per cent

HDFC Asset Management Company Ltd

3746.45

39,75,300

-2.32 per cent

24.82 per cent

LTIMindtree Ltd

5313.85

28,00,650

-1.62 per cent

9.03 per cent

Eicher Motors Ltd

3790.80

44,81,400

-1.51 per cent

15.29 per cent

Abbott India Ltd

28253.65

2,05,400

-1.24 per cent

4.09 per cent

Disclaimer: The article is for informational purposes only and not investment advice.

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