Market watch: What does the F&O market suggest about trade on February 11?

The Nifty 50 put call ratio (PCR) closed at 1.04 for the day.

In its February policy review, RBI kept all key rates unchanged as well as maintained an accommodative stance. It was more dovish than what the market was expecting and is reflected in the fall in the bond yield and rise in the equity market. At close, Nifty was up 0.81 per cent or 142 points at 17605.8. Global markets including the Asian market closed in the green, while European stock markets too are trading on a positive note, before key US inflation data. Nifty VIX further cooled in today’s trade and was down by 4.55 per cent.  

Activity on the F&O front for weekly expiry on February 17 shows 17600 to act as a strong resistance now. Highest open interest contract of 54456 stood at this strike price. The second-highest call option open interest 35318 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 17600 in the last trading session. A total of 43674 open interest was added at this strike price.  

In terms of put activity, the highest put writing was seen at a strike price of 17600, where 48037 open interest was added today, followed by 16500 where (42161) open interest was added. Highest total put open interest (49843) stood at a strike price of 16500. This is followed by a strike price of 17600, which saw a total put option open interest of 49529 contracts. 

The Nifty 50 put call ratio (PCR) closed at 1.04 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 17600.

Top 5 Call and Put Option Open Interest and Strike Price