Market watch: What does the F&O market suggest about trade on November 25?

The Nifty 50 put call ratio (PCR) closed at 0.64 compared to 0.66 in the previous trading session.

The structure of the Indian equity market has changed in a short term. It has become now a sell on the rise from earlier buy on dips. Inflation worries and selling from FIIs are not helping the market. After showing good gains yesterday and the first half of today’s trade, it saw a sharp in the second half of today’s trade. 

Activity in the F&O market for the weekly expiry on November 25, 2021, shows 17,500 to act as the first line of strong resistance followed by 17,600. The highest call option open interest (153336) 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 17,600 in the last trading session. A total of 41,868 open interest was added at this strike price. The next highest call option open interest stands at 17,500 where total open interest stood at 131,414.

In terms of put activity, the highest put writing was seen at a strike price of 17,000 (14,277 open interest added on November 24), followed by 17,100 (11,202 open interest added on November 24). The highest put open interest unwinding was seen at a strike price of 17,500 (18,171 open interest shed on November 24).

Highest total put open interest (114,284) stood at a strike price of 17,000. This is followed by a strike price of 17,300, which saw a total put option open interest of 83,084 contracts.

Following graph shows the highest change in call and put option open interest on November 24, for weekly expiry on November 25.

The Nifty 50 put call ratio (PCR) closed at 0.64 compared to 0.66  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