Market watch: What does the Futures and Options market suggest about trade on May 05?

The Nifty 50 put call ratio (PCR) closed at 0.43 for the day.

Indian equity market fell sharply after the sudden announcement by the RBI Governor raising the repo rate and CRR by 40bps and 50bps, respectively. Nifty 50 opened at 17096.60 against the previous close of 17069.10, which means a gap up of 27.50 points. Nonetheless, it slipped into red soon. 

A major blow came the RBI announcement on rate hikes. Nifty 50 finally closed in red in today's trade with a fall of 391.50 points. All the sectoral indices closed in red. The best performing index was NIFTY OIL & GAS was also down by 0.93 per cent. This is followed by NIFTY IT, which was down by 1.11 per cent. The worst performing index in today's trade was NIFTY MEDIA. It is down by 4.29 per cent. Out of the total 10.0 companies forming part of the index, all closed in red. Nifty VIX too saw an increase of 7.86 per cent from 20.28 to 21.87. 

Activity on the F&O front for weekly expiry tomorrow shows 17100 to act as a strong resistance now. Highest call open interest contract of 173681 stood at this strike price. The second-highest call option open interest 173586 for Nifty 50 stood at a strike price of 17000. In terms of the highest addition of open interest in the call options front, it was at 17100 in the last trading session. A total of 109300 open interest was added at this strike price. 

In terms of put activity, the highest put writing was seen at a strike price of 16500, where 20508 open interest was added today, followed by 16600 strike price where (17760) open interest was added. Highest total put open interest (88913) stood at a strike price of 16500. This is followed by a strike price of 16000, which saw a total put option open interest of 88166 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.43 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 tomorrow stands at 16900.

Top five call and put open interest with their strike price