Market watch: What does the F&O market suggest about trade on November 17?

The Nifty 50 put call ratio (PCR) closed at 0.6 compared to 0.8 in previous trading session.

Suddenly institutional investors are worried about the inflation globally and stretched valuation in the Indian market, which is making the domestic equity market volatile. In Tuesday's trading session, despite, frontline equity index Nifty 50 after opening in positive, failed to sustain the momentum and saw a selloff in the second half of the day. All the attempts to close in green was negated. 

Activity in the F&O market for the weekly expiry on November 18, 2021, shows that resistance has remained at 18,200. The highest call option open interest (133423) 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 18,100 in the last trading session. A total of 52,648 open interest was added at this strike price. The next highest call option open interest stands at 18,100 where total open interest stood at 117,855. 

In terms of put activity, the highest put writing was seen at a strike price of 17,800 (10,274 open interest added on November 16), followed by 17,750 (8593 open interest added on November 16). The highest put open interest unwinding was seen at a strike price of 18,100 (17,730 open interest shed on November 16). 

The highest total put open interest (63,379) stood at a strike price of 18,000. This is followed by a strike price of 17,800, which saw a total put option open interest of 62,523 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.6 compared to 0.8  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