Market watch: What does the F&O market suggest about trade on November 26?

The Nifty 50 put call ratio (PCR) closed at 1.01 compared to 0.64 in the previous trading session.

The Indian equity indices ended with a positive note in today’s trade. Against the expectation of volatile trade on monthly expiry, there was smooth trading today. Nifty closed above 17,500 following Moody’s report where it expects the economic growth in India to rebound strongly. It has pegged GDP growth for the nation at 9.3 per cent and 7.9 per cent in FY22 and FY23, respectively.

Activity in the F&O market for the weekly expiry on December 02, 2021, shows 18,000 to act as strong resistance followed by 17,500. The highest call option open interest (36,164) 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 17,500 in the last trading session. A total of 18,237 open interest was added at this strike price. The next highest call option open interest stands at 17,500 where total open interest stood at 35,391.

In terms of put activity, the highest put writing was seen at a strike price of 16,500 (28,266 open interest added on November 25), followed by 17,400 (23,187 open interest added on November 25).

Highest total put open interest (45,583) 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 45,343 contracts.

The Nifty 50 put call ratio (PCR) closed at 1.01 compared to 0.64 in the previous trading session. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.