Market watch: What does the F&O market suggest about trade on March 16?

The Nifty 50 put call ratio (PCR) closed at 0.63 for the day.

A new dimension of uncertainty is adding every day and creating nervousness among equity investors. The war between Russia and Ukraine still continues and now surging COVID-19 cases in China and the resultant lockdown has hit the confidence of investors who are already worried about the first US interest rate rise in three years that could come this week. 

Nifty 50 snapped the five-day winning streak and closed at a loss of 208.30 points. HDFC twins and Reliance Industries led to the fall in Nifty 50. Nifty VIX also jumped in today’s trade. It opened at 25.67 and closed at 26.73 with a gain of 4.09 per cent.

Activity on the F&O front for weekly expiry on March 17 shows 17500 to act as a strong resistance now. Highest open interest contract of 170487 stood at this strike price. The second-highest call option open interest 123651 for Nifty 50 stood at a strike price of 17000. In terms of the highest addition of open interest in the call options front, it was at 17500 in the last trading session. A total of 57540 open interest was added at this strike price. 

In terms of put activity, the highest put writing was seen at a strike price of 15500, where 21295 open interest was added today, followed by 15800 strike price where (19479) open interest was added. Highest total put open interest (95097) stood at a strike price of 16000. This is followed by a strike price of 15500, which saw a total put option open interest of 80876 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.63 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 17 stands at 16700.

Top five call and put open interest with their strike price