Futures and Options Market Watch: What does the Futures and Options Market suggest about trade on February 1?
The Nifty 50 put call ratio (PCR) closed at 0.77 for the day.
Nifty saw a long-buildup today, where price jumped by 0.72 per cent and OI increased by 4.74 per cent, on the other front Nifty Bank creating a significant short-covering, rose by 1.39 per cent and OI decreased by 4.23 per cent.
Nifty
Nifty Bank
The Nifty 50 put call ratio (PCR) closed at 0.77 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 1 stands at 21650.
Call Options Data
In the weekly options data analysis, the 22500 strike emerges as a significant resistance level for the Nifty in the short term, boasting the highest Call open interest at 1,97,818 contracts. This level is crucial for traders to monitor. Subsequently, the 22000 strike holds notable open interest with 1,43,417 contracts, while the 21900 strike follows closely with 1,28,908 contracts.
Observing Call writing activities, there is substantial activity at the 22500 strike, evidenced by the addition of 53,011 contracts. Additionally, the 21900 and 22300 strikes witness meaningful Call writing, accumulating 42,359 and 38,869 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 21600 strike, shedding 26,609 contracts. The 21550 and 23800 strikes also experience significant Call unwinding, relinquishing 11,446 and 11,347 contracts, respectively. This unwinding could indicate a weakening of resistance at these levels.
DSIJ offers a service 'PAS' which provides stock recommendations that have the potential to generate excellent returns on your portfolio. If this interests you, then do download the service details pdf here
Put Options Data
In the options market for Nifty, notable open interest on the Put side is concentrated at the 21500 strike, making it a crucial support level, evidenced by 1,63,052 contracts. The subsequent significant support areas include the 21000 strike with 1,40,543 contracts and the 21400 strike with 87,327 contracts.
There was substantial Put writing at the 21500 strike, where 87,359 contracts were added. Additionally, meaningful Put writing activity was observed at the 21000 and 21700 strikes, contributing 45,526 and 41,005 contracts, respectively.
Conversely, Put unwinding took place at the 19850 strike, witnessing a reduction of 11,257 contracts. The 21400 strike and 20000 strike also experienced Put unwinding, 9,215 and 8,475 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
|
|
VOLTAS
|
1096.35
|
1,12,99,200
|
7.20 per cent
|
24.00 per cent
|
|
GUJGASLTD
|
583.95
|
59,93,750
|
4.70 per cent
|
11.98 per cent
|
|
BANKBARODA
|
250.30
|
14,46,09,075
|
4.64 per cent
|
5.10 per cent
|
|
M&MFIN
|
291.75
|
3,14,62,000
|
4.51 per cent
|
14.46 per cent
|
|
SRF
|
2331.00
|
44,29,125
|
4.49 per cent
|
1.30 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
|
|
LT
|
3497.00
|
1,30,68,600
|
-4.41 per cent
|
25.05 per cent
|
|
INDUSTOWER
|
224.35
|
9,33,98,000
|
-2.88 per cent
|
5.77 per cent
|
|
CHOLAFIN
|
1192.05
|
1,10,27,500
|
-2.49 per cent
|
10.68 per cent
|
|
AMBUJACEM
|
561.50
|
5,44,57,200
|
-2.37 per cent
|
5.70 per cent
|
|
ASTRAL
|
1848.00
|
28,51,957
|
-1.80 per cent
|
1.09 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.