Market watch: What does the F&O market suggest about trade on November 18?

The Nifty 50 put call ratio (PCR) closed at 0.56 compared to 0.6 in the previous trading session. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.

Equity markets in India continued to see the bears taking charge of the market for the second consecutive day. This is despite getting positive cues from the US market. Benchmark equity indices in India in the initial trade tried to get in positive territory, however, could not sustain that and finally closed in the red. Nifty closed 101 points down (-0.6 per cent) at 17899 and Sensex closed 314 points down (-0.52 per cent) at 60,008.

Activity in the F&O market for the weekly expiry on November 18, 2021, shows that resistance has remained at 18,200. The highest call option open interest (136379) for Nifty 50 stood at a strike price of 18,200. 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 67,918 open interest was added at this strike price. The next highest call option open interest stands at 18,000 where total open interest stood at 133,159.

In terms of put activity, the highest put writing was seen at a strike price of 17,900 (19,949 open interest added on November 17), followed by 17,800 (13,914 open interest added on November 17). The highest put open interest unwinding was seen at a strike price of 18,100 (13,432 open interest shed on November 17).  

 Highest total put open interest (75,788) stood at a strike price of 17,800. This is followed by a strike price of 17,900, which saw a total put option open interest of 70,503 contracts.

Following graph shows the highest change in call and put option open interest on November 17, for weekly expiry on November 18.

The Nifty 50 put call ratio (PCR) closed at 0.56 compared to 0.6 in previous trading session. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.

*in terms of open interest