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

The Nifty 50 put call ratio (PCR) closed at 0.73 worse than 0.92 in the previous trading session.

The Indian equity market failed to maintain its positive momentum of Monday’s trade. The frontline equity indices saw a muted trading activity on Tuesday. After opening with a positive note and gaining in the first half-hour of trade, it faltered later on. Nevertheless, the broader market outperformed in yesterday’s trade and closed with a positive note.  

Activity on the F&O market in yesterday’s trade for the weekly expiry on November 11, 2021, shows that now 18,200 will act as a strong resistance till November 11. Till yesterday’s trade, it was 18,500 that was showing a strong resistance. The highest call option open interest (114,808) for Nifty 50 stood at a strike price of 18,200. In terms of the highest addition of open interest in the call options front, it was again at 18,200 in the last trading session. Total of 45,478 open interest was added at this strike price. The next highest call option open interest stands at 18,100 where total open interest stood at 97,825. 

In terms of put activity, the highest put writing was seen at strike price of 17500 (15,903 open interest added on November 09), followed by 17,700 (8412 open interest added on November 09), while there was put unwinding at strike price 17,900, followed by 17,300. 

Highest total put open interest (77,593) stood at a strike price of 17,900. This is followed by a strike price of 17,500, which saw a total put option open interest of 71,471 contracts. 

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 0.73 worse than 0.92 in the previous trading session. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.