Market watch: What does the F&O market suggest about trade on December 30?

The Nifty 50 put call ratio (PCR) closed at 1.09 for the day.

After two days of gain, the Indian equity market traded choppy ahead of monthly expiry. In the morning session, the market started on a subdued note and remained rangebound. It traded in the tight range of around 100 points. A sharp fall in the last half hour of trade led the market to finally end in red with a loss of roughly 45 points at 17,188 levels. Nifty VIX was down by 1.41 per cent in today’s trade.

Activity on the F&O front for monthly expiry on December 30 shows 17200 to act as a strong resistance now. Highest open interest contract of 175380 stood at this strike price. The second-highest call option open interest 155592.0 for Nifty 50 stood at a strike price of 17300. In terms of the highest addition of open interest in the call options front, it was at 17300 in the last trading session. A total of 57744.0 open interest was added at this strike price.  

In terms of put activity, the highest put writing was seen at a strike price of 16700 (64289.0 open interest added on 29-Dec-2021), followed by 17100 where (21470.0 open interest added on 29-Dec-2021). Highest total put open interest (196214.5) stood at a strike price of 17000. This is followed by a strike price of 16700, which saw a total put option open interest of 134509.0 contracts. 

The Nifty 50 put call ratio (PCR) closed at 1.09 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 17200.