Market watch: What does the F&O market suggest about trade on February 25?

The Nifty 50 put call ratio (PCR) closed at 0.79 for the day.

BSE Sensex today fell by 2703 points, the fourth largest in its history since 1979. Heightened geopolitical risk has led to such a fall in the market after Russia invaded Ukraine. In today’s trade all the sectoral indices closed in red and the best performing index NIFTY FMCG was also down by -3.33 per cent. This is followed by NIFTY PHARMA, which is down by 3.67 per cent. The worst performing index in today's trade was NIFTY PSU BANK. It is down by 8.26 per cent. Nifty VIX jumped by 30.31 per cent in today’s trade and closed at 31.98, the highest in the last one year. 

Activity on the F&O front for weekly expiry on March 3 remained quite lacklustre as market participants remained unsure of the market movement. Highest open interest contract of 21113 stood at 18000 strike price. The second-highest call option open interest stood of 19873 for Nifty 50 stood at a strike price of 17200. In terms of the highest addition of open interest in the call options front, it was at 17200 in the last trading session. A total of 11897 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, where 15486 open interest was added today, followed by 17200 where (8989) open interest was added. Highest total put open interest (27088) 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 15691 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.79 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 for weekly expiry on March 3 stands at 17150.

Top five call and put open interest with their strike price