Market watch: What does the Futures and Options market suggest about trade on May 20?

The Nifty 50 put call ratio (PCR) closed at 0.71 for the day.

Tracking SGX Nifty and US equity market, Indian equity market also opened deep red. Nifty 50 started with a gap down and never recovered from its initial loss. The index closed in red in today's trade with a fall of 430.90 points. It opened at 15917.40 against the previous close of 16240.30, which means a gap down of 322.90 points.  Finally, it closed with a cut of 2.65 per cent at 15809.4. 

All sectoral indices closed in red in today’s trade and even the best performing index, NIFTY FMCG was down by 0.65 per cent. This is followed by NIFTY MICROCAP 250, which was down by 2.11 per cent. The worst performing index in today's trade was NIFTY IT. It was down by 5.74 per cent. Out of total 10.0 companies forming part of the index, all closed in red. Rising inflation and relentless selling by FIIs has led to such pessimism among investors. Nifty VIX increased by 10 per cent in today’s trade and closed above 24 level.  

Activity on the F&O front for weekly expiry on May 26 shows 17000 to act as a strong resistance now. Highest call open interest contract of 161080 stood at this strike price. The second-highest call option open interest 98915 for Nifty 50 stood at a strike price of 16000. In terms of the highest addition of open interest in the call options front, it was at 17000 in the last trading session. A total of 80578 open interest was added at this strike price.

 

In terms of put activity, the highest put writing was seen at a strike price of 14300, where  44089 open interest was added today, followed by 15000 strike price where (40476) open interest was added. Highest total put open interest (92347) 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 86304 contracts.

 

The Nifty 50 put call ratio (PCR) closed at 0.71 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 26 stands at 16050.

 

Top five call and put open interest with their strike price 

Top five call and put open interest with their strike price

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