Market watch: What does the Futures and Options market suggest about trade on May 25?

The Nifty 50 put call ratio (PCR) closed at 0.83 for the day.

Equity market in India closed negative for the second day in a row. Besides, once again it fell in the second half of the trading session despite a positive start. Nifty 50 opened at 16225.55 against the previous close of 16214.70, which means a gap up of 10.85 points. Finally, it closed with a loss of 89.55 points or 0.55 per cent at 16125.15. In today’s trade the best performing index was NIFTY FINANCIAL SERVICES it was up by 0.32 per cent. This is followed by NIFTY BANK, which was up by 0.12 per cent. The worst performing index in today's trade was NIFTY MEDIA. It was down by 2.57 per cent. Out of total the 10.0 companies forming part of the index, 9.0 companies closed in red. Broad markets underperformed as the Small and Midcap indices fell more than the Nifty. The benchmark index continues to see resistance around the 16415-16142 band. Nifty VIX was 9.56 per cent in today’s trade and closed at 25.63. 

Activity on the F&O front for weekly expiry onMay 26 shows 17000 to act as a strong resistance now. Highest call open interest contract of 176635 stood at this strike price. The second-highest call option open interest 170888 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 16500 in the last trading session. A total of 62351 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 27017 open interest was added today, followed by 15300 strike price where (26582) open interest was added. Highest total put open interest (176858) stood at a strike price of 16000. This is followed by a strike price of 15500, which saw a total put option open interest of 128606 contracts. 

The Nifty 50 put call ratio (PCR) closed at 0.83 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 16200.

Top five call and put open interest with their strike price