Market watch: What does the F&O market suggest about trade on November 24?

The Nifty 50 put-call ratio (PCR) closed at 0.66 compared to 0.50 in the previous trading session.

The Indian equity market has outperformed most of its Asian and European peers in today’s trade and in the process snapped the four-day losing streak. Nifty 50 closed with gains of 0.5 per cent or 86.80 points. Most of the sectoral indices gained in today’s trade except for IT, which underperformed on the back of rising bond yield. Broader markets were clear outperformed in today’s trade.  

Activity in the F&O market for the weekly expiry on November 25, 2021, shows 17,800 to act as the first line of strong resistance followed by 18,000. The highest call option open interest (161589) for Nifty 50 stood at a strike price of 18,000. In terms of the highest addition of open interest in the call options front, it was at 17,500 in the last trading session. A total of 26,275 open interest was added at this strike price. The next highest call option open interest stands at 17,800 where total open interest stood at 126,544. 

In terms of put activity, the highest put writing was seen at a strike price of 17,500 (26,275 open interest added on November 23), followed by 17,650 (11,850 open interest added on November 23). The highest put open interest unwinding was seen at a strike price of 17,700 (6346 open interest shed on November 23). 

Highest total put open interest (101,923) stood at a strike price of 17,000. This is followed by a strike price of 17,500, which saw a total put option open interest of 89,499 contracts. 

Following graph shows the highest change in call and put option open interest on November 23, for weekly expiry on November 25. 

The Nifty 50 put-call ratio (PCR) closed at 0.66 compared to 0.50 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