Market watch: What does the Futures and Options market suggest about trade on June 02?

The Nifty 50 put call ratio (PCR) closed at 0.67 for the day.

Nifty closed in red for the second day in a row. It opened at 16594.40 against the previous close of 16584.55, which means a gap up of 9.85 points. The benchmark index closed with a cut of 61.8 points or 0.37 per cent at 16522.75. 

In today’s trade the best performing index was NIFTY MICROCAP 250 it was up by 1.23 per cent. This is followed by NIFTY PSU BANK, which was up by 0.70 per cent. The worst performing index in today's trade was the NIFTY HEALTHCARE INDEX. It is down by 1.51 per cent. In the GDP and core sector numbers today, S&P Global India Manufacturing Purchasing Managers' Index (PMI) came for May, which declined marginally to 54.6 from 54.7 a month back. Goods and Services Tax (GST) collections numbers also came in which fell to Rs 1.41 lakh crore in May, down 16 per cent from April's all-time high of Rs 1.68 lakh crore. Nifty VIX continued to climb and closed at 20.845 with a gain of 1.79 per cent.

Activity on the F&O front for weekly expiry tomorrow shows 17000 to act as a strong resistance now. Highest call open interest contract of 326416 stood at this strike price. The second-highest call option open interest 158934 for Nifty 50 stood at a strike price of 16800. In terms of the highest addition of open interest in the call options front, it was at 17000 in the last trading session. A total of 117256 open interest was added at this strike price. 

 In terms of put activity, the highest put writing was seen at a strike price of 16000, where 32704 open interest was added today, followed by 16250 strike price where (16288) open interest was added. Highest total put open interest (150861) stood at a strike price of 16000. This is followed by a strike price of 16500, which saw a total put option open interest of 102635 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.67 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 tomorrow stands at 16500.

Top five call and put open interest with their strike price