Market watch: What does the F&O market suggest about trade on February 8?

The Nifty 50 put call ratio (PCR) closed at 0.43 for the day

Indian equity market remained one of the worst performer equity markets globally. Nifty 50 closed with a fall of 1.73 per cent or 303 points at 17214 levels. All the sectoral indices barring a few like PSU Banks and Metals fell in today’s trade. Volatility Index once again surged above 20 in today’s trade by 8.1 per cent and closed 20.4 levels. The future direction of the market will depend upon the forthcoming RBI policy meet on February 9, 2022.  

Activity on the F&O front for weekly expiry on February 10 shows 18000 to act as a ceiling in this week’s trade for Nifty 50. Highest open interest contract of 167809 stood at this strike price. The second-highest call option open interest 142836 for Nifty 50 stood at a strike price of 17500, which is likely to act as strong resistance. In terms of the highest addition of open interest in the call options front, it was at 17500 in the last trading session. A total of 94444 open interest was added at this strike price.  

In terms of put activity, the highest put writing was seen at a strike price of 17000, where 25710 open interest was added today, followed by 16900 where (24523) open interest was added. Highest total put open interest (79708) 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 64174 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.43 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 17300.