What does the Futures and Options Market suggest about trade on February 21?
The Nifty 50 put call ratio (PCR) closed at 1.21 for the day.
Nifty saw a short-covering on Monday, where price jumped by 0.27 per cent and OI decreased by 2.12 per cent, as Nifty Bank created a significant long build-up, soared by 1.25 per cent and OI increased by 2.85 per cent.
Nifty
Nifty Bank
The Nifty 50 put call ratio (PCR) closed at 1.21 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 February 22 stands at 21100.
Call Options Data
In the weekly options data analysis, the 23000 strike emerges as a significant resistance level for the Nifty in the short term, boasting the highest Call open interest at 1,29,830 contracts. This level is crucial for traders to monitor. Subsequently, the 22600 strike holds notable open interest with 1,26,601 contracts, while the 22200 strike follows closely with 1,14,992 contracts.
Observing Call writing activities, there is substantial activity at the 22550 strike, evidenced by the addition of 39,281 contracts. Additionally, the 22200 and 22700 strikes witness meaningful Call writing, accumulating 30,468 and 23,170 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 22050 strike, shedding 10,256 contracts. The 22950 and 21900 strikes also experience significant Call unwinding, relinquishing 7,096 and 6,823 contracts, respectively. This unwinding could indicate a weakening of resistance at these levels.
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Put Options Data
In the options market for Nifty, notable open interest on the Put side is concentrated at the 22000 strike, making it a crucial support level, evidenced by 1,78,676 contracts. The subsequent significant support areas include the 22100 strike with 1,31,270 contracts and the 21000 strike with 1,23,267 contracts.
There was substantial Put writing at the 22100 strike, where 39,366 contracts were added. Additionally, meaningful Put writing activity was observed at the 22200 and 22150 strikes, contributing 36,883 and 34,735 contracts, respectively.
Conversely, Put unwinding took place at the 21000 strike, witnessing a reduction of 22,318 contracts. The 19500 strike and 21200 strike also experienced Put unwinding 16,010 and 11,745 contracts, respectively.
Long build-up Stocks
Following scrips were among stocks that had a long build-up. A rise in open interest (OI) and price suggests a concentration of long holdings.
|
SYMBOL
|
PRICE
|
OI
|
PRICE Change
|
OI Change
|
|
POWERGRID
|
288.40
|
6,54,91,200
|
4.30 per cent
|
7.25 per cent
|
|
GLENMARK
|
894.50
|
1,55,58,500
|
3.56 per cent
|
1.85 per cent
|
|
DEEPAKNTR
|
2367.05
|
30,11,700
|
3.39 per cent
|
12.04 per cent
|
|
AARTIIND
|
709.00
|
1,31,08,000
|
2.79 per cent
|
3.26 per cent
|
|
SAIL
|
131.65
|
13,31,68,000
|
2.53 per cent
|
0.96 per cent
|
Short build-up Stocks
A short build-up was seen in these stocks. An increase in OI along with a fall in price points to a build-up of short positions.
|
SYMBOL
|
PRICE
|
OI
|
PRICE Change
|
OI Change
|
|
FEDERALBNK
|
154.75
|
11,05,35,000
|
-5.12 per cent
|
19.76 per cent
|
|
HEROMOTOCO
|
4673.00
|
42,79,500
|
-3.98 per cent
|
19.61 per cent
|
|
BSOFT
|
809.70
|
75,72,000
|
-2.88 per cent
|
5.96 per cent
|
|
CHOLAFIN
|
1101.50
|
1,44,20,625
|
-2.85 per cent
|
8.55 per cent
|
|
GMRINFRA
|
90.05
|
26,18,32,500
|
-2.60 per cent
|
7.26 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.