Market watch: What does the F&O market suggest about trade on February 21?

The Nifty 50 put call ratio (PCR) closed at 0.93 for the day.

Nifty 50 in today’s trade closed in negative for the third day in a row. Although it gained in the early part of the day, however, as adverse news came from the Russia-Ukraine conflict, it erased all the gains made. And at close, Nifty was down 0.16 per cent or 28.3 points to close at 17276.3. Crude is on an uptrend due to geo-political tension and is likely to fuel inflation, which will be negative for the market. Nifty VIX gained by 0.73 per cent in today’s trade and closed at 22.16.  

Activity on the F&O front for weekly expiry on February 24, shows 18000 to act as a strong resistance now. Highest open interest contract of 141839 stood at this strike price. The second-highest call option open interest 99855 for Nifty 50 stood at a strike price of 17500. In terms of the highest addition of open interest in the call options front, it was at 18000 in the last trading session. A total of 42878 open interest was added at this strike price. 

In terms of put activity, the highest put writing was seen at a strike price of 16800, where 31563 open interest was added today, followed by 17300 where (29661) open interest was added. Highest total put open interest (122600) stood at a strike price of 17000. This is followed by a strike price of 16500, which saw a total put option open interest of 93235 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.93 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 24 stands at 17300.

Top five call and put open interest with their strike price