Market watch: What does the F&O market suggest about trade on February 9?

The Nifty 50 put call ratio (PCR) closed at 0.54 for the day.

The Indian equity market snapped three days of continuous fall and Nifty 50 closed with a gain of 0.31 per cent or 53.15 points. Broader market underperformed with Nifty midcap 100 down 0.7 per cent while Nifty smallcap 100 down 1.7 per cent. Global markets are waiting for US inflation data, which will determine the Fed’s monetary policy trajectory. Investors seem to ignore the US adding a further 33 Chinese entities to its export control list. Nifty VIX once again went back below 20 in today’s trade.  

Activity on the F&O front for weekly expiry on February 10 shows 17500 to act as a strong resistance now. Highest open interest contract of 165253 stood at this strike price. The second-highest call option open interest 145304 for Nifty 50 stood at a strike price of 17800. In terms of the highest addition of open interest in the call options front, it was at 17300 in the last trading session. A total of 45112 open interest was added at this strike price.  

In terms of put activity, the highest put writing was seen at a strike price of 16500, where 26465 open interest was added today followed by 17200 where (25536) open interest was added. Highest total put open interest (100627) 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 89753 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.54 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.