Market watch: What does the Futures and Options market suggest about trade on April 25?

The Nifty 50 put call ratio (PCR) closed at 0.74 for the day.

Taking negative cues from the US market, the Indian equity market too saw a sharp decline in today’s trade. The global sentiment was soured after the statement from the US Fed Chairman that the interest rate action could be stronger next time to tame the spiralling inflation. This could mean stronger measures by which inflation is brought under control but which may impact growth to some extent. Nifty 50 opened at 17242.75 in today’s trade against the previous close of 17392.60. It finally closed with a loss of 220.65 points or 1.27 per cent at 17171.95. Volatility index did not reflect such a fall and jumped up by 2.8 per cent to close above the 18 mark at 18.35.

Activity on the F&O front for weekly expiry on April 28 shows 18000 to act as a strong resistance now. Highest call open interest contract of 216406 stood at this strike price. The second-highest call option open interest 118035 for Nifty 50 stood at a strike price of 17500. In terms of the highest addition of open interest in the call options front, it was at 18000 in the last trading session. A total of 117797 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 17000, where 34638 open interest was added today, followed by 16000 strike price where (29124) open interest was added. Highest total put open interest (119391) stood at a strike price of 17000. This is followed by a strike price of 16000, which saw a total put option open interest of 88644 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.74 for the day. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.

Max pain at the end of today's trade for weekly expiry on April 28 stands at 17300.

Top five call and put open interest with their strike price