Futures and Options Market Watch: What does the Futures and Options Market suggest about trade on February 7?

The Nifty 50 put call ratio (PCR) closed at 0.99 for the day.

Nifty saw a long-buildup today, where price jumped by 0.91 per cent and OI increased by 4.12 per cent, as reflected by Nifty Bank creating a short-buildup, slipped by 0.02 per cent and OI increased by 8.59 per cent.

Nifty

Nifty Bank

The Nifty 50 put call ratio (PCR) closed at 0.99 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 22500 strike emerges as a significant resistance level for the Nifty in the short term, boasting the highest Call open interest at 1,37,754 contracts. This level is crucial for traders to monitor. Subsequently, the 23000 strike holds notable open interest with 1,34,288 contracts, while the 22600 strike follows closely with 1,15,179 contracts.

Observing Call writing activities, there is substantial activity at the 22600 strike, evidenced by the addition of 36,616 contracts. Additionally, the 22500 and 22200 strikes witness meaningful Call writing, accumulating 21,837 and 19,865 contracts, respectively. These levels suggest potential resistance zones.

On the other hand, notable Call unwinding is observed at the 22000 strike, shedding 42,714 contracts. The 21,800 and 22,850 strikes also experience significant Call unwinding, relinquishing 21,770 and 17,760 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 21000 strike, making it a crucial support level, evidenced by 1,53,936 contracts. The subsequent significant support areas include the 21700 strike with 1,40,873 contracts and the 21900 strike with 1,27,839 contracts.

There was substantial Put writing at the 21900 strike, where 78,164 contracts were added. Additionally, meaningful Put writing activity was observed at the 21800 and 21700 strikes, contributing 70,269 and 59,459 contracts, respectively.

Conversely, Put unwinding took place at the 19500 strike, witnessing a reduction of 25,716 contracts. The 20500 strike and 20800 strike also experienced Put unwinding, 13,926 and 12,611 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.