Market watch: What does the F&O market suggest about trade on November 22?

The Nifty 50 put call ratio (PCR) closed at 0.68 compared to 0.56 in the previous trading session.

There seems to be no respite for the Indian equity market. On November 18, the Indian equity market was looking weak from the beginning and by the end of the day, Nifty 50 closed falling by 134 points (-0.75 per cent) to 17,765 while Sensex was down 373 points (-0.62 per cent) to 59,636. In today’s trading Sensex gave the 60,000 mark. One of the reasons for such fall is huge selling by FIIs. Month to date FIIs have sold shares worth Rs 6,000 crore.  

Activity in the F&O market for the weekly expiry on November 25, 2021, shows that resistance has come down to 18,000. The highest call option open interest (115637) 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 71,758 open interest was added at this strike price. The next highest call option open interest stands at 18,500 where total open interest stood at 81,959. 

In terms of put activity, the highest put writing was seen at a strike price of 17,300 (23,132 open interest added on November 18), followed by 17,000 (20,049 open interest added on November 18). The highest put open interest unwinding was seen at a strike price of 18,000 (5911 open interest shed on November 18).  

The highest total put open interest (61,284) 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 57,890 contracts. 

Following graph shows the highest change in call and put option open interest on November 18, for weekly expiry on November 25.

The Nifty 50 put call ratio (PCR) closed at 0.68 compared to 0.56  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