Futures and Options Market Watch: What does the Futures and Options Market suggest about trade on February 5?
The Nifty 50 put call ratio (PCR) closed at 0.84 for the day. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.
Nifty saw a long-buildup today, where price rose by 0.95 per cent and OI increased by 7.18 per cent, Nifty Bank created a long-unwinding, dropped by 0.55 per cent and OI dropped by 2.88 per cent.
Nifty
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Nifty Bank
The Nifty 50 put call ratio (PCR) closed at 0.84 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 8 stands at 21900.
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 1,14,967 contracts. This level is crucial for traders to monitor. Subsequently, the 22200 strike holds notable open interest with 1,03,052 contracts, while the 22700 strike follows closely with 1,00,399 contracts.
Observing Call writing activities, there is substantial activity at the 22200 strike, evidenced by the addition of 60,693 contracts. Additionally, the 22100 and 22800 strikes witness meaningful Call writing, accumulating 51,662 and 50,532 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 21700 strike, shedding 29,312 contracts. The 21,800 and 21,750 strikes also experience significant Call unwinding, relinquishing 27,612 and 11,198 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 1,14,021 contracts. The subsequent significant support areas include the 21600 strike with 94,168 contracts and the 21500 strike with 87,728 contracts.
There was substantial Put writing at the 21600 strike, where 52,059 contracts were added. Additionally, meaningful Put writing activity was observed at the 21000 and 21900 strikes, contributing 50,152 and 45,037 contracts, respectively.
Conversely, Put unwinding took place at the 20600 strike, witnessing a reduction of 24,547 contracts. The 20500 strike and 20000 strike also experienced Put unwinding, 7,909 and 6,096 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
|
|
BPCL
|
559.70
|
4,56,40,800
|
9.41 per cent
|
22.42 per cent
|
|
IOC
|
164.30
|
11,87,55,000
|
9.10 per cent
|
0.76 per cent
|
|
ABBOTINDIA
|
28,287.40
|
1,86,960
|
8.57 per cent
|
7.18 per cent
|
|
ABCAPITAL
|
181.45
|
6,72,84,000
|
8.10 per cent
|
2.90 per cent
|
|
GMRINFRA
|
85.35
|
24,27,30,000
|
7.02 per cent
|
5.84 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
|
|
CUB
|
138.10
|
3,84,15,000
|
-4.66 per cent
|
24.18 per cent
|
|
SHREECEM
|
28,490.15
|
2,19,650
|
-4.21 per cent
|
9.36 per cent
|
|
EICHERMOT
|
3,839.20
|
39,81,600
|
-2.59 per cent
|
6.59 per cent
|
|
DABUR
|
546.45
|
2,46,46,250
|
-2.09 per cent
|
4.48 per cent
|
|
TATACHEM
|
992.00
|
1,38,57,800
|
-2.07 per cent
|
12.63 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.