Market watch: What does the F&O market suggest about trade on November 15?

The Nifty 50 put call ratio (PCR) closed at 1.05 compared to 0.64 in the previous trading session.

Finally, after a gap of almost two weeks, Nifty 50 reclaimed the 18,100 mark and also arrested three days of continuous fall. We saw frontline equity index such as Nifty 50 gaining by 1.28 per cent in today’s trade. The market today opened with a gap up and after an initial hiccup, it gained for the entire trading session.  

Activity in the F&O market for the weekly expiry on November 18, 2021, shows that after today’s trade resistance has moved by from 18,000 to 18,500 now. The highest call option open interest (83,240) for Nifty 50 stood at a strike price of 18,500. In terms of the highest addition of open interest in the call options front, it was at 18,500 in the last trading session. A total of 51,631 open interest was added at this strike price. The next highest call option open interest stands at 19,000 where total open interest stood at 58,546. 

In terms of put activity, the highest put writing was seen at a strike price of 18000 (93,953 open interest added on November 12), followed by 17,900 (41,639 open interest added on November 12). There was hardly and any put unwinding happened in today’s F&O activity.   

The highest total put open interest (109399) stood at a strike price of 18,000. This is followed by a strike price of 17,000, which saw a total put option open interest of 65,082 contracts. 

Following graph shows the highest change in call and put option open interest on November 12, for weekly expiry on November 18. 

The Nifty 50 put call ratio (PCR) closed at 1.05 compared to 0.64 in the previous trading session. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish. 

*in terms of open interest