Market watch: What does the F&O market suggest about trade on December 31?

The Nifty 50 put call ratio (PCR) closed at 0.97 for the day.

We ended the monthly expiry on a volatile note. For the month Nifty saw a movement of around 1200 points. The index fell to a low of 16,400 and at the same time has also seen a high of 17,600. As expected, Nifty 50 opened at 17,200, which was also a max pain point. It reached 17,260 in the first hour of trade, however, in the latter half of the day it again fell below 17,200 only to recover in last half hour of trade to close at 17,203. Nifty VIX closed at a 16.56 per cent high from the last close.   

Activity on the F&O front for weekly expiry on January 6, 2022, shows 17200 to act as a strong resistance now. The highest open interest contract of 51378 stood at this strike price. The second-highest call option open interest 46134 for Nifty 50 stood at a strike price of 18000. In terms of the highest addition of open interest in the call options front, it was at 18500 in the last trading session. A total of 38042 open interest was added at this strike price.  

In terms of put activity, the highest put writing was seen at a strike price of 17200 (41147 open interest added on 30-Dec-2021), followed by 15100 where (24833 open interest added on 30-Dec-2021). Highest total put open interest (54943) stood at a strike price of 17200. This is followed by a strike price of 17000, which saw a total put option open interest of 38795 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.97 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 17200.