Market watch: What does the Futures and Options market suggest about trade on May 13?

The Nifty 50 put call ratio (PCR) closed at 0.37 for the day, one of the lowest in recent times.

There was a bloodbath on D-Street today. Tracking the global market, Indian equity market saw a sharp sell-off in today’s trade. This was after US inflation data, which rose to 8.3%. Though this has come below last month's reading, however, it surpassed market expectations. This means an aggressive tightening by the US Federal Reserve going ahead. Nifty 50 opened at 16021.10 against the previous close of 16167.10, which means a gap down of 146.00 points. 

Nonetheless, during the day further weakness was observed and it finally closed with a cut of 359.1 points or 2.22 per cent at 15808.0. Nifty VIX too breached the 24 level and closed at 24.265 with a gain of 6.41 per cent. Investors have lost almost Rs 34 lakh crore in the last one month.

Activity on the F&O front for weekly expiry on May 19 shows 17000 to act as a strong resistance now. Highest call open interest contract of 86538 stood at this strike price. The second-highest call option open interest 75260 for Nifty 50 stood at a strike price of 16000. 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 69914 open interest was added at this strike price. 

In terms of put activity, the highest put writing was seen at a strike price of 15900, where 29826 open interest was added today, followed by 16000 strike price where (25015) open interest was added. Highest total put open interest (47126) stood at a strike price of 16000. This is followed by a strike price of 15800, which saw a total put option open interest of 37402 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.37 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 19 stands at 15900. 

Top five call and put open interest with their strike price