Market watch: What does the Futures and Options market suggest about trade on January 25?

The Nifty 50 put call ratio (PCR) closed at 0.89 for the day.

Nifty saw a significant long-buildup today, where price jump of 1.39 per cent and OI increased by 130.14 per cent, as reflected by Nifty Bank creating a long-buildup, rising by 0.49 per cent and OI increasing by 20.49 per cent.

Nifty

Nifty Bank

The Nifty 50 put call ratio (PCR) closed at 0.89 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 January 23 stands at 21400.

Call Options Data

In the weekly options data analysis, the 22000 strike emerges as a significant resistance level for the Nifty in the short term, boasting the highest Call open interest at 2,38,211 contracts. This level is crucial for traders to monitor. Subsequently, the 21700 strike holds notable open interest with 2,11,581 contracts, while the 21800 strike follows closely with 1,73,893 contracts.

Observing Call writing activities, there is substantial activity at the 21450 strike, evidenced by the addition of 35,196 contracts. Additionally, the 2200 and 21400 strikes witness meaningful Call writing, accumulating 32,056 and 31,167 contracts, respectively. These levels suggest potential resistance zones.

On the other hand, notable Call unwinding is observed at the 21200 strike, shedding 38,658 contracts. The 22,500 and 22,300 strikes also experience significant Call unwinding, relinquishing -35,908 and 32,348 contracts, respectively. This unwinding could indicate a weakening of resistance at these levels.

Put Options Data

In the options market for Nifty, notable open interest on the Put side is concentrated at the 21000 strike, making it a crucial support level, evidenced by 1,76,342 contracts. The subsequent significant support areas include the 21300 strike with 1,66,162 contracts and the 21500 strike with 1,57,079 contracts.

There was substantial Put writing at the 21400 strike, where 1,06,123 contracts were added. Additionally, meaningful Put writing activity was observed at the 21300 and 21450 strikes, contributing 88,244 and 51,289 contracts, respectively.

Conversely, Put unwinding took place at the 17350 strike, witnessing a reduction of 54,863 contracts. The 20000 strike and 20400 strike also experienced Put unwinding, 10,760 and 9,090 contracts, respectively.

Long build-up Stocks

Following scrips were among stocks that had a long build-up. A rise in open interest (OI) and price suggests a concentration of long holdings.

Short build-up Stocks

A short build-up was seen in these stocks. An increase in OI along with a fall in price points to a build-up of short positions.