Market watch: What does the F&O market suggest about trade on December 2?

Highest total put open interest (128,906) stood at a strike price of 16,500.

The Indian equity market opened with a gap up despite a negative closing in the US market the previous night. All the indices closed in green except for pharma, which was gaining in the last few sessions. Sectors such as metals and PSU bank gained more than 2 per cent in today’s trade. What helped such gains is strong domestic GDP growth data for the second quarter of FY22. Indian economy clocked a healthy growth rate of 8.4% in 2Q FY22 returning to its pre-covid levels.

Activity on the F&O front for weekly expiry on December 2 shows 17,500 to act as a resistance. Highest call option open interest (1,72,064) for Nifty 50 stood at a strike price of 17,500. In terms of the highest addition of open interest in the call options front, it was at 17,400 in the last trading session. Total of 22,313 open interest was added at this strike price. The next highest call option open interest stands at 17,400 where total open interest stood at 104,525.

In terms of put activity, the highest put writing was seen at a strike price of 17,100 (61,464 open interest added on December 1), followed by 16,500 (57,124 open interest added on December 1).

Highest total put open interest (128,906) stood at a strike price of 16,500. This is followed by a strike price of 17,000, which saw a total put option open interest of 122,361 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.87. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.