F&O Market Watch: What does the Futures and Options Market suggest about trade on February 26?
The Nifty 50 put call ratio (PCR) closed at 0.84 for the day.
Nifty saw a short-buildup on Monday, where price slipped by 0.41 per cent and OI increased by 16.14 per cent, as Nifty Bank created a short-build up, tumbled by 0.57 per cent and OI increased by 10.47 per cent.
Nifty
Nifty Bank
The Nifty 50 put call ratio (PCR) closed at 0.84 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 22100.
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 2,58,860 contracts. This level is crucial for traders to monitor. Subsequently, the 22500 strike holds notable open interest with 1,47,503 contracts, while the 22300 strike follows closely with 1,39,498 contracts.
Observing Call writing activities, there is substantial activity at the 22200 strike, evidenced by the addition of 58,873 contracts. Additionally, the 22900 and 21950 strikes witness meaningful Call writing, accumulating 42,696 and 42,323 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 23100 strike, shedding 31,015 contracts. The 23300 and 23400 strikes also experience significant Call unwinding, relinquishing 3,070 and 1,494 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 1,49,973 contracts. The subsequent significant support areas include the 21500 strike with 1,38,481 contracts and the 22200 strike with 1,36,278 contracts.
There was substantial Put writing at the 18650 strike, where 63,827 contracts were added. Additionally, meaningful Put writing activity was observed at the 22100 and 21500 strikes, contributing 32,393 and 32,386 contracts, respectively.
Conversely, Put unwinding took place at the 22250 strike, witnessing a reduction of 15,462 contracts. The 21200 strike and 22000 strike also experienced Put unwinding 12,949 and 12,061 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
|
|
BHARATFORG
|
1173.60
|
1,05,26,000
|
3.70 per cent
|
23.33 per cent
|
|
GLENMARK
|
927.00
|
2,31,35,475
|
3.09 per cent
|
49.59 per cent
|
|
HINDPETRO
|
542.70
|
4,28,08,500
|
2.88 per cent
|
19.12 per cent
|
|
LT
|
3478.30
|
1,99,72,800
|
2.70 per cent
|
30.19 per cent
|
|
LICHSGFIN
|
659.35
|
1,83,78,000
|
2.60 per cent
|
18.54 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
|
16.85
|
2,42,64,80,000
|
-3.99 per cent
|
9.34 per cent
|
|
BSOFT
|
781.10
|
88,22,000
|
-3.76 per cent
|
11.16 per cent
|
|
METROPOLIS
|
1694.00
|
14,82,800
|
-3.12 per cent
|
10.23 per cent
|
|
BANDHANBNK
|
202.60
|
13,72,05,000
|
-3.06 per cent
|
42.30 per cent
|
|
PERSISTENT
|
8430.00
|
20,90,200
|
-2.80 per cent
|
19.46 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.