What does the Futures and Options Market suggest about trade on February 23?
The Nifty 50 put call ratio (PCR) closed at 0.89 for the day.
Nifty saw a long-buildup on Monday, where price jumped by 0.90 per cent and OI increased by 9.06 per cent, as Nifty Bank created a long-unwinding, tumbled by 0.08 per cent and OI decreased by 3.00 per cent.
Nifty
Nifty Bank
The Nifty 50 put call ratio (PCR) closed at 0.89 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 29 stands at 21150.
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 2,01,049 contracts. This level is crucial for traders to monitor. Subsequently, the 22000 strike holds notable open interest with 88,209 contracts, while the 22800 strike follows closely with 79,958 contracts.
Observing Call writing activities, there is substantial activity at the 23000 strike, evidenced by the addition of 58,788 contracts. Additionally, the 22800 and 22700 strikes witness meaningful Call writing, accumulating 36,653 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 22150 strike, shedding 7,707 contracts. The 20000 and 19000 strikes also experience significant Call unwinding, relinquishing 1,552 and 1,029 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 21000 strike, making it a crucial support level, evidenced by 1,41,181 contracts. The subsequent significant support areas include the 22000 strike with 1,35,952 contracts and the 21500 strike with 87,450 contracts.
There was substantial Put writing at the 21000 strike, where 61,051 contracts were added. Additionally, meaningful Put writing activity was observed at the 22000 and 21900 strikes, contributing 49,683 and 43,547 contracts, respectively.
Conversely, Put unwinding took place at the 23000 strike, witnessing a reduction of 42,640 contracts. The 22800 strike and 19950 strike also experienced Put unwinding 29,319 and 26,933 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
|
|
ABB
|
5443.00
|
21,45,250
|
8.86 per cent
|
19.49 per cent
|
|
IDEA
|
16.40
|
2,09,09,60,000
|
6.49 per cent
|
3.12 per cent
|
|
CUMMINSIND
|
2769.00
|
48,14,700
|
6.09 per cent
|
10.47 per cent
|
|
OBEROIRLTY
|
1380.55
|
75,13,800
|
4.18 per cent
|
3.64 per cent
|
|
BEL
|
196.55
|
12,91,50,600
|
4.10 per cent
|
9.66 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
|
|
INDUSINDBK
|
1493.00
|
2,90,44,000
|
-1.55 per cent
|
9.23 per cent
|
|
IOC
|
180.60
|
17,43,59,250
|
-1.10 per cent
|
2.31 per cent
|
|
BPCL
|
628.30
|
3,52,36,800
|
-1.01 per cent
|
2.90 per cent
|
|
KOTAKBANK
|
1729.40
|
3,81,04,400
|
-0.98 per cent
|
13.34 per cent
|
|
HDFCBANK
|
1426.50
|
25,10,93,150
|
-0.89 per cent
|
13.77 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.