Market watch: What does the F&O market suggest about trade on January 7?

The Nifty 50 put call ratio (PCR) closed at 1.02 for the day.

The Indian equity market after gaining for four days in a row finally closed in red in today’s trade. Hawkish US Fed Reserve minutes of meeting spooked the equity market globally. Indian. Nifty 50 opened with a gap down and kept on declining in the first half of the trading. The market recovered in the second half of trade and at one point in time, Nifty Bank was trading in green. Even the advance-decline ratio was at 1:1, which means there is no weakness as such in the market.  

Activity on the F&O front for weekly expiry on January 13 shows 18000 to act as a strong resistance now. Highest open interest contract of 68176 stood at this strike price. The second-highest call option open interest 50001 for Nifty 50 stood at a strike price of 17800. In terms of the highest addition of open interest in the call options front, it was at 18000 in the last trading session. A total of 62970 open interest was added at this strike price.  

In terms of put activity, the highest put writing was seen at a strike price of 17500 (57157) open interest added on (06-Jan-2022), followed by 17700 (37204) open interest was added on (06-Jan-2022). Highest total put open interest (57757) stood at a strike price of 17500. This is followed by a strike price of 16500, which saw a total put option open interest of 39524 contracts. 

The Nifty 50 put call ratio (PCR) closed at 1.02 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 17750.