Market Watch: What does F&O market suggest about trade on January 3?

Nifty 50 put-call ratios (PCR) closed at 1.27 for the day.

The last day of this year’s trading was in favour of bulls. After opening with a gap of 40 points, Nifty 50 kept on gaining, and for a brief period, it even breached the 17,400-mark.  At the time of market closing, Nifty 50 was up by 150 points or 0.87 per cent. What helped such a gain was the metal index, which remained one of the best performers in today’s trade and also, for the entire year. Nifty VIX also plunged 2.07 per cent in today’s trade and closed at 16.22. 

Activity on the F&O front for the weekly expiry on January 6, 2022, indicates 18,000 to act as a strong resistance now. The highest open interest contract of 80,948 stood at this strike price. The second-highest call option open interest 55,560 for Nifty 50 stood at a strike price of 18,500. In terms of the highest addition of open interest in the call options front, it was at 18,000 in the last trading session. A total of 34,449 open interests were added at this strike price. 

In terms of put activity, the highest put writing was seen at a strike price of 17,300 (57,191) open interest added on (December 31, 2021), followed by 16,300, where (37,588) open interests were added on December 31, 2021. The highest total put open interest (76,797) stood at a strike price of 17,200. This was followed by a strike price of 17,300, which saw a total put option open interest of 73,363 contracts.  

Nifty 50 put-call ratios (PCR) closed at 1.27 for the day. A PCR above 1 is considered bullish while below 1 is considered bearish.  

Max Pain at the end of today's trade stood at 17,300.