Market watch: What does the F&O market suggest about trade on November 12?

The Nifty 50 put call ratio closed at 0.64 compared to 0.69 in the previous trading session.

The Indian equity market traded on a very volatile note in today’s trade. It opened with a gap down and continued to show weakness in the entire trading session. A few attempts by Nifty 50 to cross 17900 could not be sustained and finally, it closed 0.72 per cent down. Nifty VIX also gained by 0.29 per cent, however, at one point in time, it was up by more than five per cent. 

 Activity in the F&O market for the weekly expiry on November 18, 2021, shows that 18,000 will continue as a strong resistance. The highest call option open interest (59,570) for Nifty 50 stood at a strike price of 18,000. In terms of the highest addition of open interest in the call options front, it was at 18,000 in the last trading session. A total of 51,555 open interest was added at this strike price. The next highest call option open interest stands at 19,000 where total open interest stood at 42,702. 

In terms of put activity, the highest put writing was seen at a strike price of 17300 (22,011 open interest added on November 11), followed by 17,400 (20,833 open interest added on November 11). There was hardly and put unwinding happened in today’s F&O activity. 

Highest total put open interest (28,875) stood at a strike price of 17,500. This is followed by a strike price of 17,400, which saw a total put option open interest of 28,212 contracts. 

Following graph shows the highest change in call and put option open interest on November 11, for weekly expiry on November 18.

The Nifty 50 put call ratio (PCR) closed at 0.64 worse than 0.69 in the previous trading session. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish. 

*in terms of open interest