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

The Nifty 50 put call ratio (PCR) closed at 0.8 compared to 1.05 in the previous trading session.

Taking cues from the global equity market, the Indian equity market also opened in green in today’s trade. Nevertheless, they could not build on the opening gap up and remained range-bound throughout the trading session. Owing to such volatility, frontline equity indices closed almost flat. 

Activity in the F&O market for the weekly expiry on November 18, 2021, shows that after today’s trade, the resistance has moved from 18,500 to 18,200 now. The highest call option open interest (106646) for Nifty 50 stood at a strike price of 18,200. In terms of the highest addition of open interest in the call options front, it was at 18,200 in the last trading session. A total of 57,012 open interest was added at this strike price. The next highest call option open interest stands at 18,500 where total open interest stood at 105,486. 

In terms of put activity, the highest put writing was seen at a strike price of 18200 (27,124 open interest added on November 15), followed by 18,100 (19,771 open interest added on November 15). The highest put open interest unwinding was seen at a strike price of 18,000 (23,640 open interest shed on November 15). This means traders are not sure of holding the 18,000 mark for this expiry.   

Highest total put open interest (81156) stood at a strike price of 18,000. This is followed by a strike price of 17,500, which saw a total put option open interest of 74,599 contracts. 

Following graph shows highest change in call and put option open interest on November 15, for weekly expiry on November 18. 

The Nifty 50 put call ratio (PCR) closed at 0.8 compared to 1.05 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