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

The Nifty 50 put call ratio (PCR) closed at 0.47 for the day.

Following a negative handover from Wall Street, Nifty 50 too opened in red with a cut of 158 points. Fight between Russia and Ukraine seems to be intensifying and heightened investor fears about the escalating conflict that sent oil prices higher. There was news of a fire near a Ukraine nuclear facility, which further led to a fall in the market, especially the European market. 

At the end of the day, Nifty 50 closed with a cut of 252.7 points or 1.53 per cent at 16245.35. All sectoral indices ended in the negative in today’s trade. Despite all this Nifty VIX cooled off by 0.7 per cent. Nifty VIX opened at 28.155 and closed at 27.9575 with a loss of 0.7 per cent.

Activity on the F&O front for weekly expiry on March 10 shows 17500 to act as a strong resistance now. Highest open interest contract of 131976 stood at this strike price. The second-highest call option open interest 102397 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 89228 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 14750, where 27155 open interest was added today, followed by 16300 strike price where (22806) open interest was added. Highest total put open interest (52687) stood at a strike price of 15000. This is followed by a strike price of 16000, which saw a total put option open interest of 48767 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.47 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 onMarch 10 stands at 16400.

Top five call and put open interest with their strike price