Market watch: What does the Futures and Options market suggest about trade on May 18?

The Nifty 50 put call ratio (PCR) closed at 1.09 for the day.

Indian equity market saw a second consecutive day of gain in today’s trade. Nifty 50 closed in green with a gain of 417.00 points or 2.63 per cent at 16259.3. It opened at 15912.60 against the previous close of 15842.30, which means a gap up of 70.30 points. It continued to build on that for the entire day. Every sectoral index closed in green. The best performing index was NIFTY METAL, which was up by 6.86 per cent. This is followed by NIFTY OIL & GAS, which was up by 3.68 per cent. The worst performing index in today's trade was NIFTY PHARMA, which was also up by 1.09 per cent. Nifty VIX contracted by 7.27 per cent to close at 22.74.  

Activity on the F&O front for weekly expiry on May 19 shows 17000 to act as a strong resistance now. Highest call open interest contract of 127674 stood at this strike price. The second-highest call option open interest 115316 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 16600 in the last trading session. A total of 29586 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 92361 open interest was added today, followed by 15000 strike price where (73383) open interest was added. Highest total put open interest (155873) stood at a strike price of 15000. This is followed by a strike price of 16000, which saw a total put option open interest of 120354 contracts.

The Nifty 50 put call ratio (PCR) closed at 1.09 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 May 19 stands at 16100.

Top five call and put open interest with their strike price