Market watch: What does the Futures and Options market suggest about trade on April 05?

The Nifty 50 put call ratio (PCR) closed at 1.28 for the day.

Nifty 50 reclaimed the 18000 mark after a gap up of two and half months. Trade set-up was not very great in the morning before the news of a merger between HDFC Bank and HDFC came in, which changed the direction of the market for good. Nifty 50 opened at 17809.10 with a gain of 138 points and finally closed at 18053.4 with a gain of 382.95 per cent. HDFC twins alone contributed more than 220 points to Nifty 50’s gain in today’s trade. Nifty VIX cooled off by 2.86 per cent. It opened at 18.435 and closed at 17.91. 

Activity on the F&O front for weekly expiry on April 7 shows 18500 to act as a strong resistance now. Highest call open interest contract of 115671 stood at this strike price. The second-highest call option open interest 108175 for Nifty 50 stood at a strike price of 18000. In terms of the highest addition of open interest in the call options front, it was at 19000 in the last trading session. A total of 64517 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 18000, where 98822 open interest was added today, followed by 17800 strike price where (75714) open interest was added. Highest total put open interest (123134) stood at a strike price of 17500. This is followed by a strike price of 17000, which saw a total put option open interest of 115232 contracts. 

The Nifty 50 put call ratio (PCR) closed at 1.28 for the day. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish. 

Max pain at the end of today's trade for weekly expiry on April 7 stands at 17850. 

Top five call and put open interest with their strike price