Market watch: What does the F&O market suggest about trade on January 5?

The Nifty 50 put call ratio (PCR) closed at 1.51 for the day.

Nifty 50 regained 17,800 in today’s trade after a gap of 45 days. The surge in the frontline indices in the last 90 minutes of trade has helped the indices to touch the last 45 day's high. The market started on a positive despite SGX Nifty showing a negative start. Outperformance by the energy sector and banks led to such a rise in the indices.   

Activity on the F&O front for weekly expiry on January 6 shows 18000 will continue to act as a strong resistance. Highest open interest contract of 146122 stood at this strike price. The second-highest call option open interest 71523 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 18000 in the last trading session. A total of 65909 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 (94200) open interest added on (04-Jan-2022), followed by 17500 where (84079) open interest was added (on 04-Jan-2022). Highest total put open interest (126516) stood at a strike price of 17000. This is followed by a strike price of 17600, which saw a total put option open interest of 96983 contracts. 

The Nifty 50 put call ratio (PCR) closed at 1.51 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 17700.