Futures and Options Market Watch: What does the Futures and Options Market suggest about trade on February 20?
The Nifty 50 put call ratio (PCR) closed at 1.19 for the day.
Nifty saw a short-covering on Friday, where price jumped by 0.32 per cent and OI increased by 3.25 per cent, as Nifty Bank created a short-covering, soared by 0.32 per cent and OI decreased by 2.98 per cent.
Nifty
Nifty Bank
The Nifty 50 put call ratio (PCR) closed at 1.19 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 22050.
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 1,19,690 contracts. This level is crucial for traders to monitor. Subsequently, the 22600 strike holds notable open interest with 1,12,682 contracts, while the 22100 strike follows closely with 1,04,342 contracts.
Observing Call writing activities, there is substantial activity at the 22200 strike, evidenced by the addition of 29,434 contracts. Additionally, the 22300 and 23000 strikes witness meaningful Call writing, accumulating 27,155 and 24,115 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 22000 strike, shedding 14,032 contracts. The 21950 and 21900 strikes also experience significant Call unwinding, relinquishing 8,190 and 8,120 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 22000 strike, making it a crucial support level, evidenced by 1,56,279 contracts. The subsequent significant support areas include the 21000 strike with 1,45,540 contracts and the 21900 strike with 95,160 contracts.
There was substantial Put writing at the 22000 strike, where 53,481 contracts were added. Additionally, meaningful Put writing activity was observed at the 22100 and 21300 strikes, contributing 51,551 and 35,172 contracts, respectively.
Conversely, Put unwinding took place at the 21100 strike, witnessing a reduction of 15,388 contracts. The 21850 strike and 20600 strike also experienced Put unwinding 14,089 and 3,909 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
|
|
DIXON
|
6831.90
|
15,27,400
|
6.64 per cent
|
9.67 per cent
|
|
GMRINFRA
|
92.80
|
24,54,97,500
|
3.92 per cent
|
3.86 per cent
|
|
MCX
|
3713.95
|
25,98,800
|
3.35 per cent
|
3.69 per cent
|
|
GRASIM
|
2174.40
|
84,56,733
|
3.00 per cent
|
0.30 per cent
|
|
MCDOWELL-N
|
1157.40
|
70,46,200
|
2.69 per cent
|
2.87 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
|
|
COALINDIA
|
455.00
|
6,95,39,400
|
-4.25 per cent
|
7.44 per cent
|
|
HDFCAMC
|
3746.40
|
31,38,600
|
-3.24 per cent
|
9.00 per cent
|
|
LUPIN
|
1594.35
|
83,63,150
|
-1.96 per cent
|
13.75 per cent
|
|
HAL
|
3006.55
|
95,68,500
|
-1.94 per cent
|
7.54 per cent
|
|
HINDPETRO
|
556.50
|
3,57,12,900
|
-1.93 per cent
|
3.80 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.
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