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

The Nifty 50 put call ratio is at 0.72 much better than 0.47 in the last trading session.

The equity benchmark index Nifty 50 on yesterday’s trade took strong support around the 50-day moving average and bounced back from that level. It gained around 1.5 per cent in yesterday’s trade. All the sectoral indices close in green. Good earnings season and strong macro data uplifted confidence with regards to economic recovery. All this is also reflected in the F&O activity of yesterday.   

Activity on the F&O market for the weekly expiry on November 3, 2021, shows 18,000 will act as feeble resistance now. The highest call option open interest of 1,26,066 contracts stood at this strike price. Nevertheless, it shed 17608 contracts in yesterday’s trade which shows that call writers are not sure about defending 18,000. The next highest call option open interest stands at 19,000 where total open interest stood at 1,10,316. In terms of the highest addition of call open interest on Monday’s trading session, 20,500 was added at the strike price of 18,300.   

In terms of put activity that will give a sense of support, the highest put writing was seen at a strike price of 17800 (54,232 contracts added on November 01), followed by 17,700 (41,217 contracts added on November 01), while there was put unwinding at strike price 16600 (3586 contracts shed), followed by 16,400 (2479 contracts shed). 

Highest total put open interest (87,662) stood at a strike price of 17,800. This is followed by strike price 17,700, which saw a total put option open interest of 73,262 contracts, while strike price 17,500 has 72885 contracts in open interest. 

  Following table shows the difference between call and put options at strike price near to max pain of 17900. 

The Nifty 50 put call ratio (PCR) closed at 0.72 much better than 0.47 in the last trading session. 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.