Futures and Options Market Watch: What does the Futures and Options Market suggest about trade on February 19?
The Nifty 50 put call ratio (PCR) closed at 1.10 for the day.
Nifty saw a short-covering on Friday, where price jumped by 0.40 per cent and OI decreased by 1.36 per cent, as Nifty Bank created a short-covering, soared by 0.64 per cent and OI decreased by 8.08 per cent.
Nifty
Nifty Bank
The Nifty 50 put call ratio (PCR) closed at 1.10 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 22 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 95,575 contracts. This level is crucial for traders to monitor. Subsequently, the 22600 strike holds notable open interest with 88,975 contracts, while the 22800 strike follows closely with 85,013 contracts.
Observing Call writing activities, there is substantial activity at the 22100 strike, evidenced by the addition of 46,983 contracts. Additionally, the 22800 and 22300 strikes witness meaningful Call writing, accumulating 44,220 and 37,019 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 21900 strike, shedding 19,682 contracts. The 21800 and 21700 strikes also experience significant Call unwinding, relinquishing 7,205 and 5,546 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 1,30,329 contracts. The subsequent significant support areas include the 20000 strike with 1,04,728 contracts and the 19500 strike with 87,563 contracts.
There was substantial Put writing at the 22000 strike, where 69,150 contracts were added. Additionally, meaningful Put writing activity was observed at the 19500 and 22050 strikes, contributing 42,083 and 35,477 contracts, respectively.
Conversely, Put unwinding took place at the 20950 strike, witnessing a reduction of 10,965 contracts. The 20800 strike and 21800 strike also experienced Put unwinding, 3,954 and 2,078 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
|
|
IPCALAB
|
1245.95
|
37,55,700
|
7.70 per cent
|
0.36 per cent
|
|
GLENMARK
|
875.20
|
1,55,14,275
|
7.31 per cent
|
9.98 per cent
|
|
FEDERALBNK
|
165.05
|
9,84,35,000
|
4.89 per cent
|
5.01 per cent
|
|
WIPRO
|
544.05
|
4,95,69,000
|
4.47 per cent
|
4.60 per cent
|
|
METROPOLIS
|
1786.20
|
12,65,200
|
4.37 per cent
|
14.60 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
|
|
GUJGASLTD
|
543.25
|
88,71,250
|
-6.91 per cent
|
34.34 per cent
|
|
RECLTD
|
474.75
|
4,35,54,000
|
-2.16 per cent
|
2.15 per cent
|
|
GMRINFRA
|
89.30
|
23,63,62,500
|
-1.76 per cent
|
1.89 per cent
|
|
UBL
|
1739.55
|
24,35,200
|
-1.53 per cent
|
3.03 per cent
|
|
CANFINHOME
|
809.55
|
43,16,325
|
-1.33 per cent
|
2.95 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.