F&O Market Watch: What does the Futures and Options Market suggest about trade on February 27?
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 0.24 per cent and OI increased by 22.10 per cent, as Nifty Bank created a short-build up, tumbled by 0.02 per cent and OI increased by 6.57 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 22150.
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 2,59,985 contracts. This level is crucial for traders to monitor. Subsequently, the 22500 strike holds notable open interest with 1,62,641 contracts, while the 22800 strike follows closely with 1,55,494 contracts.
Observing Call writing activities, there is substantial activity at the 22800 strike, evidenced by the addition of 49,667 contracts. Additionally, the 22750 and 22500 strikes witness meaningful Call writing, accumulating 29,842 and 26,649 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 22900 strike, shedding 36,181 contracts. The 23200 and 23300 strikes also experience significant Call unwinding, relinquishing 9,000 and 3,873 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 1,89,927 contracts. The subsequent significant support areas include the 22000 strike with 1,85,181 contracts and the 21000 strike with 1,39,437 contracts.
There was substantial Put writing at the 21500 strike, where 52,543 contracts were added. Additionally, meaningful Put writing activity was observed at the 2200 and 22100 strikes, contributing 52,522 and 38,897 contracts, respectively.
Conversely, Put unwinding took place at the 18650 strike, witnessing a reduction of 36,848 contracts. The 21300 strike and 21000 strike also experienced Put unwinding 6,131 and 5,727 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
|
|
ICICIGI
|
1726.20
|
52,07,000
|
4.63 per cent
|
61.98 per cent
|
|
HAVELLS
|
1465.45
|
61,08,000
|
2.93 per cent
|
38.27 per cent
|
|
TATAMOTORS
|
963.50
|
8,63,96,325
|
2.88 per cent
|
26.33 per cent
|
|
ABB
|
5433.25
|
18,89,250
|
2.51 per cent
|
9.92 per cent
|
|
TATACOMM
|
1913.50
|
82,88,500
|
2.42 per cent
|
16.33 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
|
|
SHRIRAMFIN
|
2366.95
|
1,25,66,700
|
-4.71 per cent
|
79.54 per cent
|
|
IDEA
|
16.10
|
2,47,87,20,000
|
-4.45 per cent
|
13.13 per cent
|
|
NMDC
|
225.45
|
10,17,13,500
|
-3.82 per cent
|
7.79 per cent
|
|
HINDCOPPER
|
252.95
|
4,23,09,900
|
-3.73 per cent
|
33.05 per cent
|
|
RECLTD
|
444.15
|
4,87,26,000
|
-3.55 per cent
|
13.36 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.
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