Market watch: What does the F&O market suggest about trade on December 15?

The Nifty 50 put call ratio (PCR) closed at 0.55 for the day.

Benchmark equity indices fell for the third day in a row but managed to recover from the day’s lows. At the close, Nifty and Sensex were down by 43 and 166 points respectively.  In terms of percentage, it fell by 0.3 per cent. The reason for such nervousness in the market is the several Central bank meetings this week to act on the future course of action on monetary policy leading to cautious sentiment in the market. The US Federal Reserve is scheduled to announce its latest interest-rate decision on Wednesday, followed by the European Central Bank (ECB) and the Bank of England on Thursday. 

Activity on the F&O front for weekly expiry on December 16 shows 18000 to act as a strong resistance now. Highest open interest contract of 160349 stood at this strike price. The second-highest call option open interest 153080 for Nifty 50 stood at a strike price of 17600. In terms of the highest addition of open interest in the call options front, it was at 17400 in the last trading session. A total of 44617 open interest was added at this strike price.  

In terms of put activity, the highest put writing was seen at a strike price of 17300 (29452 open interest added on 2021-12-14), followed by 17200 (14841 open interest added on 2021-12-14). Highest total put open interest (88717) stood at a strike price of 17000. This is followed by a strike price of 17300, which saw a total put option open interest of 78828 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.55 for the day. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.

Max pain at the end of today's trade stands at 17350.