Market watch: What does the Futures and Options market suggest about trade on January 29?

The Nifty 50 put call ratio (PCR) closed at 1.02 for the day.

Nifty saw a short-buildup today, where price decline of 0.59 per cent and OI increased by 20.73 per cent, as reflected by Nifty Bank creating a short-buildup, slipped by 0.64 per cent and OI increasing by 32.32 per cent.

Nifty

Nifty Bank

The Nifty 50 put call ratio (PCR) closed at 1.02 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 February 1 stands at 21400.

Call Options Data

In the weekly options data analysis, the 21500 strike emerges as a significant resistance level for the Nifty in the short term, boasting the highest Call open interest at 53,111 contracts. This level is crucial for traders to monitor. Subsequently, the 22000 strike holds notable open interest with 48,408 contracts, while the 21400 strike follows closely with 39,979 contracts.

Observing Call writing activities, there is substantial activity at the 23500 strike, evidenced by the addition of 62,888 contracts. Additionally, the 22500 and 23000 strikes witness meaningful Call writing, accumulating 51,456 and 35,938 contracts, respectively. These levels suggest potential resistance zones.

On the other hand, notable Call unwinding is observed at the 20850 strike, shedding 11 contracts. The 20,550 and 19,550 strikes also experience significant Call unwinding, relinquishing 2 and 1 contracts, respectively. This unwinding could indicate a weakening of resistance at these levels.

(All highest OI considered at near trading level due to the expiry day)

Put Options Data

In the options market for Nifty, notable open interest on the Put side is concentrated at the 20000 strike, making it a crucial support level, evidenced by 70,671 contracts. The subsequent significant support areas include the 19500 strike with 64,329 contracts and the 21000 strike with 61,907 contracts.

There was substantial Put writing at the 19500 strike, where 61,634 contracts were added. Additionally, meaningful Put writing activity was observed at the 20000 and 21000 strikes, contributing 54,888 and 32,256 contracts, respectively.

Conversely, Put unwinding took place at the 22000 strike, witnessing a reduction of 765 contracts. The 21800 strike and 21850 strike also experienced Put unwinding, 170 and 77 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.