Futures and Options Market Watch: What does the Futures and Options Market suggest about trade on February 13?

The Nifty 50 put call ratio (PCR) closed at 0.64 for the day.

Nifty saw a short-buildup today, where price slipped by 0.67 per cent and OI increased by 2.61 per cent, as Nifty Bank created a significant short-buildup, dropped by 1.77 per cent and OI increased by 6.28 per cent.

Nifty

Nifty Bank

The Nifty 50 put call ratio (PCR) closed at 0.64 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 15 stands at 21700.

Call Options Data

In the weekly options data analysis, the 22000 strike emerges as a significant resistance level for the Nifty in the short term, boasting the highest Call open interest at 1,89,480 contracts. This level is crucial for traders to monitor. Subsequently, the 22500 strike holds notable open interest with 1,48,453 contracts, while the 21800 strike follows closely with 1,37,317 contracts.

Observing Call writing activities, there is substantial activity at the 21900 strike, evidenced by the addition of 72,237 contracts. Additionally, the 21700 and 21800 strikes witness meaningful Call writing, accumulating 71,774 and 63,703 contracts, respectively. These levels suggest potential resistance zones.

On the other hand, notable Call unwinding is observed at the 22700 strike, shedding 20,971 contracts. The 22650 and 23300 strikes also experience significant Call unwinding, relinquishing 5,146 and 4,194 contracts, respectively. This unwinding could indicate a weakening of resistance at these levels.

Put Options Data

In the options market for Nifty, notable open interest on the Put side is concentrated at the 20800 strike, making it a crucial support level, evidenced by 1,07,915 contracts. The subsequent significant support areas include the 21000 strike with 1,07,167 contracts and the 19500 strike with 98,681 contracts.

There was substantial Put writing at the 20800 strike, where 42,068 contracts were added. Additionally, meaningful Put writing activity was observed at the 21300 and 21400 strikes, contributing 23,421 and 21,011 contracts, respectively.

Conversely, Put unwinding took place at the 21750 strike, witnessing a reduction of 8,821 contracts. The 21150 strike and 21800 strike also experienced Put unwinding, 4,803 and 4,674 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.

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.

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