Market watch: What does the Futures and Options market suggest about trade on May 31?

The Nifty 50 put call ratio (PCR) closed at 1.27 for the day.

Domestic equity market gained for the third day in a row on the back of positive handover from the US market and affirmative news globally. Sentiments got a boost up when the world’s second-largest economy, China eased Covid restrictions in Shanghai and Beijing and offered a slew of economic support. 

Nifty 50 opened at 16527.90 against the previous close of 16352.45, which means a gap up of 175.45 points. It continued to build on that and closed with a gain of 308.95 points or 1.89 per cent at 16661.4. Indian equity market remained one of the best performers today. 

In today’s trade, all the sectoral indices closed in green and the best performing index was NIFTY CONSUMER DURABLES which was up by 4.22 per cent. This is followed by NIFTY REALTY, which was up by 4.06 per cent. The worst performing index in today's trade was NIFTY PHARMA. It was up by 0.01 per cent. Out of the total 20.0 companies forming part of the index, 8.0 companies closed in red, and 12.0 closed in green. Nifty VIX further cooled off and closed below 20 at 19.98. 

Activity on the F&O front for weekly expiry on June 2 shows 17000 to act as a strong resistance now. Highest call open interest contract of 146140 stood at this strike price. The second-highest call option open interest 75414 for Nifty 50 stood at a strike price of 16700. 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 46224 open interest was added at this strike price. 

 In terms of put activity, the highest put writing was seen at a strike price of 16500, where 96274 open interest was added today, followed by 16600 strike price where (66180) open interest was added. Highest total put open interest (115231) stood at a strike price of 16300. This is followed by a strike price of 16500, which saw a total put option open interest of 104200 contracts. 

The Nifty 50 put call ratio (PCR) closed at 1.27 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 2 stands at 16500.

Top five call and put open interest with their strike price