Market watch: What does the Futures and Options market suggest about trade on June 13?

Highest put option open interest contract was added at a strike price of 16000 for expiry on June 16.

After getting a negative handover from the US market, Indian equity market also opened gap down. Nifty 50 opened at 16283.95 against the previous close of 16478.10, which means a gap down of 194.15 points. It never made a serious attempt to get into positive territory and finally, it closed with a cut of 276.3 points or 1.68 per cent at 16201.8. 

All the sectoral indices closed in red in today’s trade. Even the best performing index, NIFTY FMCG was down by 0.03 per cent. This is followed by NIFTY AUTO, which was down by 0.22 per cent. Among sectors, Oil & Gas, Metals, Banks and IT indices fell the most. The worst performing index in today's trade was NIFTY FINANCIAL SERVICES. It was down by 2.24 per cent. Out of the total 20.0 companies forming part of the index, 19.0 companies closed in red. European Central Bank is the latest central bank to join the hawkish note and gave a rate hike guidance. Nifty VIX opened at 19.14 and closed at 19.575 with a gain of 2.27 per cent.

Activity on the F&O front for weekly expiry on June 16 shows 17000 to act as a strong resistance now. The highest call open interest contract of 128668 stood at this strike price. The second-highest call option open interest 123820 for Nifty 50 stood at a strike price of 16500. In terms of the highest addition of open interest in the call options front, it was at 16300 in the last trading session. A total of 88435 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 16000, where 34787 open interest was added today, followed by 15800 strike price where (30468) open interest was added. Highest total put open interest (79852) stood at a strike price of 16000. This is followed by a strike price of 15000, which saw a total put option open interest of 75921 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.67 for the day. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.

Top five call and put open interest with their strike price