Market watch: What does the F&O market suggest about trade on February 16?

The Nifty 50 put call ratio (PCR) closed at 0.76 for the day

Markets (Nifty 50) today covered the previous day's loss and closed at 17,352.45 near its high of 17,375. Today, markets gained around three per cent or 510 points. India VIX today closed at 20.61 down by 10 per cent from the previous close of 22.98. On the sectoral front, auto, banks, media, consumption and infrastructure sectors outshined Nifty 50. On the flip side, sectors like pharma, PSE, healthcare, oil & gas and energy underperformed Nifty 50. Even the broader indices failed to outperform the Nifty 50. 

Activity on the F&O front for weekly expiry on February 17 shows 17700 to act as a strong resistance now. Highest open interest contract of 131992 stood at this strike price. The second-highest call option open interest 124957 for Nifty 50 stood at a strike price of 18000. In terms of the highest addition of open interest in the call options front, it was at 17700 in the last trading session. A total of 50404 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 17000, where 101429 open interest was added today, followed by 17300 where (41090) open interest was added. Highest total put open interest (139896) stood at a strike price of 17000. This is followed by a strike price of 16000, which saw a total put option open interest of 93471 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.76 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 stands at 17200.

Top five call and put open interest with their strike price