Market watch: What does the F&O market suggest about trade on February 17?

The Nifty 50 put call ratio (PCR) closed at 0.78 for the day.

Geopolitical factors weighted the Indian equity market in today’s trade. Nifty 50 opened in green and kept on swinging between positive and negative as news kept emanating of Russian forces withdrawing from the Ukraine border. Nifty 50 closed with a minor loss of 30 points at 17,322 levels. Nifty VIX, an indicator of volatility remained quite volatile and finally closed at 20.59. Nifty 50 could not breach 17,500 in today’s trade and is likely to remain a strong resistance. 

Activity on the F&O front for weekly expiry tomorrow shows 17500 to act as a strong resistance now. Highest open interest contract of 171314 stood at this strike price. The second-highest call option open interest 151956 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 17600 in the last trading session. A total of 56089 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, where 43604 open interest was added today, followed by 17400 where (34190) open interest was added. Highest total put open interest (128264) 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 112080 contracts.

The Nifty 50 put-call ratio (PCR) closed at 0.78 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.

Top five call and put open interest with their strike price