Market watch: What does the Futures and Options market suggest about trade on May 09?

The Nifty 50 put call ratio (PCR) closed at 0.46 for the day.

Indian equity market saw a sharp sell-off in today’s trade following the global cues. In yesterday’s trade, US equity market fell by more than 2 per cent, Asian markets closed with a cut for more than two per cent except for Japanese market (NIKKEI 225 Index), and even European market are trading with loss of over 1 per cent. There are concerns over economic growth due to rising inflation. Further, higher bond yields as well as continued FIIs selling added to the overall pressure.   

Nifty 50 opened at 16415.55 against the previous close of 16682.65, which means a gap down of 267.10 points. It closed with a fall of 271.4 points or 1.63 per cent at 16411.25. There was not much action in Nifty VIX front and increased by 4.71 per cent to close at 21.25. 

Activity on the F&O front for weekly expiry on May 12 shows 17000 to act as a strong resistance now. Highest call open interest contract of 125335 stood at this strike price. The second-highest call option open interest 118353 for Nifty 50 stood at a strike price of 17400. In terms of the highest addition of open interest in the call options front, it was at 17400 in the last trading session. A total of 77258 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 15100, where 34146 open interest was added today, followed by 16400 strike price where (33406) open interest was added. Highest total put open interest (75831) stood at a strike price of 15100. This is followed by a strike price of 16000, which saw a total put option open interest of 67782 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.46 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 May 12 stands at 16500.

Top five call and put open interest with their strike price