Market watch: What does the F&O market suggest about trade on November 23?
The Nifty 50 put call ratio (PCR) closed at 0.50 compared to 0.68 in the previous trading session.
Indian equity market started the first day of the week trading with a lot of negative news. First index heavyweight, Reliance Industries saw the cancellation of its deal with Aramco, then there was the withdrawal of the three farm laws that had a negative sentimental impact on the market and finally return of Covid-19 and new restrictions imposed in various parts of the world impacted the Indian market. All this weighed negatively on the equity market and it saw one of the worst falls in the last seven months. At close, Nifty was down 1.96 per cent or 348 points at 17417.
Activity in the F&O market for the weekly expiry on November 25, 2021, shows 18,000 to continue as a strong resistance. The highest call option open interest (164637) 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 17,600 in the last trading session. A total of 90,900 open interest was added at this strike price. The next highest call option open interest stands at 17,800 where total open interest stood at 131,855.
In terms of put activity, the highest put writing was seen at a strike price of 17,000 (26,711 open interest added on November 22), followed by 15,500 (21,217 open interest added on November 22). The highest put open interest unwinding was seen at a strike price of 17,500 (9094 open interest shed on November 22).
Highest total put open interest (80,894) stood at a strike price of 17,000. This is followed by a strike price of 17,400, which saw a total put option open interest of 69,030 contracts.
Following graph shows the highest change in call and put option open interest on November 22, for weekly expiry on November 25.
The Nifty 50 put call ratio (PCR) closed at 0.50 compared to 0.68 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