Futures and Options Market Watch: What does the Futures and Options Market suggest about trade on January 31?
The Nifty 50 put call ratio (PCR) closed at 0.65 for the day.
Nifty saw a long-unwinding today, where price slipped by 1.05 per cent and OI declined by 6.74 per cent, as reflected by Nifty Bank creating a short-buildup, dropped by 0.34 per cent and OI increased by 1.11 per cent.
Nifty
Nifty Bank
The Nifty 50 put call ratio (PCR) closed at 0.65 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 1 stands at 21600.
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 1,43,779 contracts. This level is crucial for traders to monitor. Subsequently, the 21700 strike holds notable open interest with 1,34,971 contracts, while the 22000 strike follows closely with 1,27,771 contracts.
Observing Call writing activities, there is substantial activity at the 21700 strike, evidenced by the addition of 80,058 contracts. Additionally, the 21800 and 22000 strikes witness meaningful Call writing, accumulating 46,375 and 44,040 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 21000 strike, shedding 3,489 contracts. The 21,300 and 21,400 strikes also experience significant Call unwinding, relinquishing 3,434 and 1,447 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 98,388 contracts. The subsequent significant support areas include the 21500 strike with 83,923 contracts and the 20000 strike with 78,673 contracts.
There was substantial Put writing at the 20500 strike, where 23,094 contracts were added. Additionally, meaningful Put writing activity was observed at the 20600 and 21000 strikes, contributing 17,624 and 13,422 contracts, respectively.
Conversely, Put unwinding took place at the 21700 strike, witnessing a reduction of 25,111 contracts. The 19500 strike and 21350 strike also experienced Put unwinding, 25,017 and 21,982 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
|
|
ZEEL
|
172.95
|
12,44,70,000
|
5.94 per cent
|
16.64 per cent
|
|
HINDPETRO
|
473.95
|
2,94,05,700
|
4.22 per cent
|
1.41 per cent
|
|
BHEL
|
230.70
|
9,19,17,000
|
3.69 per cent
|
5.83 per cent
|
|
IEX
|
145.40
|
6,49,76,250
|
3.38 per cent
|
4.08 per cent
|
|
LICHSGFIN
|
622.05
|
1,56,22,000
|
2.88 per cent
|
4.29 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
|
|
COROMANDEL
|
1051.00
|
13,72,000
|
-8.38 per cent
|
78.83 per cent
|
|
TRENT
|
3052.05
|
32,31,600
|
-6.70 per cent
|
3.04 per cent
|
|
BAJFINANCE
|
6854.50
|
84,22,250
|
-5.41 per cent
|
19.38 per cent
|
|
CHAMBLFERT
|
360.50
|
80,10,400
|
-3.55 per cent
|
11.68 per cent
|
|
OFSS
|
6450.65
|
7,35,000
|
-3.49 per cent
|
3.35 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.