Market watch: What does the F&O market suggest about todays trade?

The Nifty 50 put call ratio (PCR) closed at 0.47.

The equity benchmark index Nifty 50, is now down by almost five per cent from its all-time high and last week it was down by 2.5 per cent. This is probably the worst weekly performance in several months. On October 29, markets opened in negative and though it did recover somewhat in the first half of the session, but as selling pressure again intensified markets closed with a loss of one per cent. 

Activity on the F&O market for the weekly expiry on November 3, 2021, shows 18,000 will act as strong resistance now. At this strike (18,000) price highest call open interest for weekly expiry stood. This is followed by 19,000 where total open interest stood at 1,10,703. In terms of the highest addition of open interest on the Friday trading session 83,375 was added at the strike price of 18,000.   

In terms of put activity that will give a sense of support, the highest put writing was seen at a strike price of 16000 (22,017 contracts added on October 29), followed by 16,500 (19,522 contracts added on October 29), while there was put unwinding at strike price 18100 (8372 contracts shed), followed by 18,300 (6771 contracts shed). 

Highest total put open interest (44,769) stood at a strike price of 17,000. This is followed by a strike price of 17,500, which saw a total put option of 43,786 contracts, while a strike price of 17,800 has 33,430 contracts in open interest. 

Following table shows the difference between call and put option at strike price near to max pain of 18000. 

The Nifty 50 put call ratio (PCR) closed at 0.47. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish. 

Following table shows the participant wise action of key players on the index options front.