Market watch: What does the F&O market suggest about trade on December 28?

The Nifty 50 put call ratio (PCR) closed at 1.16 for the day.

The Indian equity market started the week on a strong note. Although the opening was not great, at one point in time Nifty 50 was down by more than 100 points, however, it recovered almost 250 points from its day’s low. Such gain came on weak volume. At close, Nifty was up 0.49 per cent or 82.5 points at 17086.2. Nifty Pharma index outperformed in today’s trade while Nifty Media was the worst-performing sector. The advance to decline ratio stood at 168:126.

Activity on the F&O front for weekly expiry on December 30 shows 18000 to act as a strong resistance now. The highest open interest contract of 157176.5 stood at this strike price. The second-highest call option open interest 118398.5 for Nifty 50 stood at a strike price of 17500. In terms of the highest addition of open interest in the call options front, it was at 17000 in the last trading session. A total of 38134.5 open interest was added at this strike price. 

In terms of put activity, the highest put writing was seen at a strike price of 17000 (83697.0 open interest added on 27-Dec-2021), followed by 16000 (45740.0 open interest added on 27-Dec-2021). The highest total put open interest (194297.0) stood at a strike price of 17000. This is followed by a strike price of 16500, which saw a total put option open interest of 128981.0 contracts. 

The Nifty 50 put call ratio (PCR) closed at 1.16 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 17050.