Market watch: What does the F&O market suggest about trade on January 10?

The Nifty 50 put call ratio (PCR) closed at 0.99 for the day.

Shrugging off the negative cues from the US market, the Indian equity market closed in green in today’s trade. At one point in time, it seems that the market will breach 17700 level, however, the last hour of recovery helped the market to close in green. Nifty closed with a gain of 0.38 per cent or 66.8 points at 17812.7. It is Oil & Gas and Nifty Bank that led from the front and helped the indices to gain. Nifty VIX also saw volatility and closed 2.09 per cent down.  

The equity market recouped part of the loss it suffered yesterday. Thanks to the last hour surge in the market, Nifty 50 ended in the green. Though the market opened in green and touched an intraday high of 17905, it soon went into profit booking and slipped to almost 17700 level. Investors will be now focusing on inflation data for the eurozone and US jobs data due later in the day for clues on the pace of policy tightening. 

Activity on the F&O front for weekly expiry on January 13 shows 18000 to act as a strong resistance now. Highest open interest contract of 91701 stood at this strike price. The second-highest call option open interest 70387 for Nifty 50 stood at a strike price of 18500. 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 86495 open interest was added at this strike price. 

In terms of put activity, the highest put writing was seen at a strike price of 17500 (82415 open interest added on 07-Jan-2022), followed by 16800 (70264 open interest added on 07-Jan-2022). Highest total put open interest (83015) stood at a strike price of 17500. This is followed by a strike price of 16800, which saw a total put option open interest of 73255 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.99 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 17800.