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