F&O Action: Futures and Options market cues for January 31

The Nifty 50 put call ratio (PCR) closed at 0.79 for the day.

Nifty 50 closed in red for the second consecutive day. At close, Nifty was down 0.05 per cent or 8.2 points at 17101.9. For the week, Nifty 50 fell by 2.9 per cent. The broader market outperformed today’s trade and the BSE Midcap index rose 1.02 per cent while Smallcap index rose 1.07 per cent. In terms of sectoral performance, Nifty Healthcare index was best performing while Nifty Bank was worst. Nifty VIX cooled off by 1.76 per cent and closed at 20.7 in today’s trade. 

Activity on the F&O front for weekly expiry on February 3 shows that market participants are not taking any aggressive bet due to the big event of Union Budget on February 1, 2022. Highest open interest contract of 62374 stood at strike price of 18000. The second-highest call option open interest 61072 for Nifty 50 stood at a strike price of 19800. In terms of the highest addition of open interest in the call options front, it was at 17500 in the last trading session. A total of 35096 open interest was added at this strike price.  

In terms of put activity, the highest put writing was seen at a strike price of 17300, where 29478 open interest was added today followed by 16700 where (29285) open interest was added. Highest total put open interest (56788) stood at a strike price of 15100. This is followed by a strike price of 17000, which saw a total put option open interest of 51177 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.79 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 stands at 17300.