Market watch: What does the Futures and Options market suggest about trade on May 2?

The Nifty 50 put call ratio (PCR) closed at 0.7 for the day.

This entire week we saw the market closing in red and green on alternative trading days. After closing in green on the monthly expiry day, equity indices closed will a loss today. Nifty 50 opened at 17329.25 against the previous close of 17245.05, which means a gap up of 84.20 points. Nonetheless, the final half-hour of sharp selloff led to reversing of all the gains and finally Nifty 50 closing down by 142.50 points or 0.83 per cent to 17,102.55. There was no single sector that closed in green in today’s trade. Despite the huge selloff, the volatility index remained calm and closed below its previous close. Nifty VIX opened at 19.377 and closed at 19.415.

Activity on the F&O front for weekly expiry on May 5 shows highest call open interest contract of 121998 stood at 18000 strike price. The second-highest call option open interest 106466 for Nifty 50 stood at a strike price of 17300. In terms of the highest addition of open interest in the call options front, it was at 18500 in the last trading session. A total of 84559 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 17100, where 58103 open interest was added today, followed by 16200 strike price where (50597) open interest was added. Highest total put open interest (89360) stood at a strike price of 17000. This is followed by a strike price of 17100, which saw a total put option open interest of 87829 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.7 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 5 stands at 17200.

Top five call and put open interest with their strike price