Market watch: What does the Futures and Options market suggest about trade on June 14?

The Nifty 50 put call ratio (PCR) closed at 0.51 for the day.

Indian equity market mirroring weak global cues saw a deep cut in today’s trade. Getting a negative handover from US market, Nifty 50 closed in red in today's trade with a fall of 427.40 points or 2.64 per cent at 15774.4. It opened at 15877.55 against the previous close of 16201.80, which means a gap down of 324.25 points. The twin issue of higher inflation and higher interest rate is hurting the equity market everywhere. Global markets saw a sharp sell-off after US consumer inflation for May 2022 accelerated to a four-decade high of 8.6 per cent. 

All the sectoral indices closed in red in today’s trade even the best performing index NIFTY FMCG was down by 0.94 per cent. This is followed by NIFTY HEALTHCARE INDEX, which was down by 1.75 per cent. The worst performing index in today's trade was NIFTY SMALLCAP 50. It is down by 4.31 per cent. Out of total the 50.0 companies forming part of the index, all companies closed in red. Nifty VIX climbed 14.25 per cent to close at 22.365.  

Activity on the F&O front for weekly expiry on June 16 shows 16500 to act as a strong resistance now. Highest call open interest contract of 182644 stood at this strike price. The second-highest call option open interest 140476 for Nifty 50 stood at a strike price of 16300. In terms of the highest addition of open interest in the call options front, it was at 16000 in the last trading session. A total of 117431 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 15500, where 39719 open interest was added today, followed by 14500 strike price where (27689) open interest was added. Highest total put open interest (101959) stood at a strike price of 15000. This is followed by a strike price of 15500, which saw a total put option open interest of 99527 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.51 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 June 16 stands at 15850.

Top five call and put open interest with their strike price