Market watch: What does the Futures and Options market suggest about trade on May 6?

The Nifty 50 put call ratio (PCR) closed at 0.48 for the day.

After getting a positive handover from the US market, Nifty 50 opened at 16854.75 against the previous close of 16677.60, which means a gap up of 177.15 points. Nonetheless, it lost all the opening gains on the back of selling by foreign institutional investors. Finally, it closed marginally up by 5 points at 16682.6.  

In today’s trade, the best performing index was NIFTY IT, it was up by 2.07 per cent. This is followed by NIFTY METAL, which was up by 0.62 per cent. The worst performing index in today's trade was NIFTY REALTY. It is down by -1.62 per cent. Out of the total 10.0 companies forming part of the index, 7.0 companies closed in red, and 3.0 closed in green. Nifty VIX cooled off in today’s trade and closed at 20.29 showing a fall of 7.24 per cent.

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 89043 stood at this strike price. The second-highest call option open interest 61225 for Nifty 50 stood at a strike price of 17500. 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 55822 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 39127 open interest was added today, followed by a 15500 strike price where (29917) open interest was added. Highest total put open interest (41100) 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 40363 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.48 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 16800.

Top five call and put open interest with their strike price