Market watch: What does the F&O market suggest about todays trade?

The Nifty 50 put call ratio (PCR) closed at 0.52. A PCR above 1 is considered bullish, while a PCR below 1 is considered bearish.

Nifty after showing a positive trade on October 26, saw volatility in the subsequent trading session, and finally witnessed one of the worst falls, since April 2021. Relentless, FIIs selling and downgrading the Indian equity market by foreign brokerage houses led to such a fall in yesterday’s trade. By the end of the day, Nifty was down 1.94 per cent or 353.7 points to 17857.25. 

Activity on the F&O market for the weekly expiry on November 3, 2021, shows 18,000 will act as strong resistance now. The highest put writing was seen at strike price of 17000 (20,552 contracts added on October 28), followed by 17,500 (17039 contracts added on October 27), while there was put unwinding at strike price 18200 (3324 contracts shed), followed by 18,250 (1026 contracts shed). Highest total put open interest (31010) stood at a strike price of 18,000. Although Nifty is trading below this level, it is likely that in the next few trading sessions market is likely to move towards the 18,000 level. This is followed by a strike price of 17,000, which saw a total put option of 27,767 contracts, while a strike price of 17,500 has 27,363 contracts in open interest.   

In terms of overall open interest on the call option side, maximum open interest stood at a strike price of 20000. Total call open interest of 67256 contracts stood at a strike price of 20,000. This was followed by a strike price of 18000 where 50374 contracts were added in open interest.  

Following table shows the difference in open interest between call and put options at the different strike prices. 

The Nifty 50 put call ratio (PCR) closed at 0.52. A PCR above 1 is considered bullish, while a PCR below 1 is considered bearish.  

   Following table shows the participant wise action of key players on the index options front.