What does the Futures and Options Market suggest about trade on February 22?

What does the Futures and Options Market suggest about trade on February 22?

Prajwal Wakhare
/ Categories: Trending, Mindshare, Options

The Nifty 50 put call ratio (PCR) closed at 0.71 for the day.

Nifty saw a short-buildup on Monday, where price slipped by 0.80 per cent and OI increased by 3.58 per cent, as Nifty Bank created a short-buildup, tumbled by 0.57 per cent and OI increased by 6.35 per cent.

Nifty

Screenshot-2024-02-21-171323

Nifty Bank

Screenshot-2024-02-21-171331
The Nifty 50 put call ratio (PCR) closed at 0.71 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 22050.

Call Options Data

In the weekly options data analysis, the 22500 strike emerges as a significant resistance level for the Nifty in the short term, boasting the highest Call open interest at 2,80,434 contracts. This level is crucial for traders to monitor. Subsequently, the 22200 strike holds notable open interest with 2,78,921 contracts, while the 22300 strike follows closely with 2,09,351 contracts.

Observing Call writing activities, there is substantial activity at the 22200 strike, evidenced by the addition of 1,72,949 contracts. Additionally, the 22500 and 22300 strikes witness meaningful Call writing, accumulating 1,70,948 and 1,28,295 contracts, respectively. These levels suggest potential resistance zones.

On the other hand, notable Call unwinding is observed at the 22950 strike, shedding 6,966 contracts. The 23250 and 23700 strikes also experience significant Call unwinding, relinquishing 5,927 and 4,580 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 21500 strike, making it a crucial support level, evidenced by 1,95,877 contracts. The subsequent significant support areas include the 22000 strike with 1,59,755 contracts and the 21800 strike with 1,37,208 contracts.

There was substantial Put writing at the 22500 strike, where 86,694 contracts were added. Additionally, meaningful Put writing activity was observed at the 22900 and 22800 strikes, contributing 41,510 and 36,502 contracts, respectively.

Conversely, Put unwinding took place at the 22100 strike, witnessing a reduction of 42,640 contracts. The 21400 strike and 21150 strike also experienced Put unwinding 29,319 and 26,933 contracts, respectively.

Screenshot-2024-02-21-171351

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

ABB

5017.90

19,53,375

10.72 per cent

21.42 per cent

PEL

922.05

1,56,54,000

3.67 per cent

26.56 per cent

DLF

886.00

3,76,20,000

2.56 per cent

7.39 per cent

JINDALSTEL

772.25

2,71,27,500

1.59 per cent

2.59 per cent

GODREJPROP

2339.00

49,54,250

1.49 per cent

0.89 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

IDEA

15.30

2,08,17,60,000

-4.37 per cent

1.90 per cent

MPHASIS

2654.95

37,81,525

-4.16 per cent

1.96 per cent

BPCL

635.35

3,56,85,000

-3.93 per cent

7.86 per cent

ABFRL

226.70

5,02,71,000

-3.88 per cent

16.30 per cent

BHEL

222.70

10,01,07,000

-3.76 per cent

7.32 per cent

Disclaimer: The article is for informational purposes only and not investment advice.

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