Market watch: What does the F&O market suggest about todays trade?
The Nifty 50 put call ratio (PCR) closed at 0.75 better than 0.55 in the previous trading session
The set-up for today’s trade is positive. Global tailwind and positive domestic cues will help the Indian equity market to reverse part of its underperformance of October 2021. First, the US Fed has maintained its accommodative stance and there is no taper tantrum at least for now. Besides, a cut in excise duty on petrol and diesel will have a positive impact on inflation number going ahead. Also, a few of the earnings that came out during the weekend were better than expected.
Activity on the F&O market for the weekly expiry on November 11, 2021, does not give a clear indication of where the market will find support or resistance. Open interest is spread everywhere. The highest call option open interest (71,651) for Nifty 50 stood at a strike price of 20,000. In terms of the highest addition of open interest in the call options front, it was at 18,300 in the last trading session. A total of 22,496 open interest was added at this strike price. The next highest call option open interest stands at 18,000 where total open interest stood at 60,597.
In terms of put activity, the highest put writing was seen at strike price of 17000 (36,664 open interest added on November 03), followed by 17,700 (19,970 open interest added on November 03), while there was put unwinding at strike price 17,250, followed by 18,200.
Highest total put open interest (64,579) stood at a strike price of 17,000. This is followed by a strike price of 17,500, which saw a total put option open interest of 40,960 contracts.
Following table shows the difference between call and put options at strike price near to max pain of 17900.
|
Strike Price
|
Open Interest (Call option)
|
Open Interest (Put option)
|
Diff(Put – Call)
|
|
17,600.00
|
1266
|
25690
|
24424
|
|
17,700.00
|
3980
|
34589
|
30609
|
|
17,800.00
|
15366
|
35211
|
19845
|
|
17900
|
32562
|
30267
|
-2295
|
|
18,000.00
|
60597
|
20907
|
-39690
|
|
18,100.00
|
32786
|
9134
|
-23652
|
|
18,200.00
|
41471
|
3992
|
-37479
|
The Nifty 50 put call ratio (PCR) closed at 0.75 better than 0.55 in the previous 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.
|
|
Index Put Options
|
|
Client Type
|
Change of OI*
|
% Change of OI*
|
Nov 03 2021
|
Nov 02 2021
|
Nov 01 2021
|
|
Client
|
-1726
|
-0.54%
|
-320257
|
-318531
|
-303569
|
|
Pro
|
-4197
|
-7.78%
|
49755
|
53952
|
84353
|
|
DII
|
2000
|
4.88%
|
43014
|
41014
|
37014
|
|
FII
|
-7439
|
-3.30%
|
218322
|
225761
|
208602
|
|
*Change from Previous Day
|
|
|
|
|
|
|
|
Index Call Options
|
|
Client Type
|
Change of OI*
|
% Change of OI*
|
Nov 03 2021
|
Nov 02 2021
|
Nov 01 2021
|
|
Client
|
-111758
|
-75.06%
|
37139
|
148897
|
8430
|
|
Pro
|
101838
|
52.04%
|
-93835
|
-195673
|
-81060
|
|
DII
|
0
|
0.00%
|
401
|
401
|
401
|
|
FII
|
9919
|
21.39%
|
56295
|
46376
|
72229
|
|
*Change from Previous Day
|
|
|
|
|
|
|
|
Net Change in Open Interest
|
|
Client Type
|
Change of OI*
|
% Change of OI*
|
Nov 03 2021
|
Nov 02 2021
|
Nov 01 2021
|
|
Client
|
-110032
|
-23.54%
|
357396
|
467428
|
311999
|
|
Pro
|
92672
|
37.76%
|
-152756
|
-245428
|
-135012
|
|
DII
|
0
|
0.00%
|
-42613
|
-42613
|
-40613
|
|
FII
|
17358
|
9.68%
|
-162027
|
-179385
|
-136373
|
|
*Change from Previous Day
|
|
|
|
|
|