F&O Market Watch: What does the Futures and Options Market suggest about trade on March 1?
The Nifty 50 put call ratio (PCR) closed at 1.22 for the day.
Nifty saw a short-covering on Monday, where price jumped by 2.25 per cent and OI decreased by 18.91 per cent, as Nifty Bank created a long-build up, soared by 3.28 per cent and OI increased by 3.88 per cent.
Nifty
Nifty Bank
The Nifty 50 put call ratio (PCR) closed at 1.22 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 March 7, 2024 stands at 22200.
Call Options Data
In the weekly options data analysis, the 23000 strike emerges as a significant resistance level for the Nifty in the short term, boasting the highest Call open interest at 1,26,599 contracts. This level is crucial for traders to monitor. Subsequently, the 22800 strike holds notable open interest with 1,07,120 contracts, while the 22500 strike follows closely with 67,650 contracts.
Observing Call writing activities, there is substantial activity at the 22800 strike, evidenced by the addition of 54,836 contracts. Additionally, the 22700 and 22800 strikes witness meaningful Call writing, accumulating 49,964 and 41,615 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 21900 and 23000 strike, shedding 6,017 and 15,486 contracts respectively. This unwinding could indicate a weakening of resistance at these levels.
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Put Options Data
In the options market for Nifty, notable open interest on the Put side is concentrated at the 22000 strike, making it a crucial support level, evidenced by 1,50,143 contracts. The subsequent significant support areas include the 21000 strike with 1,45,357 contracts and the 22200 strike with 1,29,584 contracts.
There was substantial Put writing at the 22200 strike, where 1,04,650 contracts were added. Additionally, meaningful Put writing activity was observed at the 22100 and 22000 strikes, contributing 1,00,669 and 79,466 contracts, respectively.
Conversely, Put unwinding took place at the 21750 strike, witnessing a reduction of 6,904 contracts. The 22750 strike and 23300 strike also experienced Put unwinding 2 and 2 contracts, respectively.
Long build-up Stocks
Following scrips were among stocks that had a long build-up. A rise in open interest (OI) and price suggests a concentration of long holdings.
|
SYMBOL
|
PRICE
|
OI
|
PRICE Change
|
OI Change
|
|
SAIL
|
134.25
|
11,92,64,000
|
9.41 per cent
|
54.26 per cent
|
|
TATASTEEL
|
151.65
|
20,60,96,000
|
6.91 per cent
|
1.68 per cent
|
|
JINDALSTEL
|
828.10
|
2,40,50,000
|
6.14 per cent
|
4.33 per cent
|
|
TVSMOTOR
|
2268.50
|
56,48,300
|
5.95 per cent
|
18.61 per cent
|
|
DIXON
|
7047.90
|
14,86,800
|
4.67 per cent
|
10.73 per cent
|
Short build-up Stocks
A short build-up was seen in these stocks. An increase in OI along with a fall in price points to a build-up of short positions.
|
SYMBOL
|
PRICE
|
OI
|
PRICE Change
|
OI Change
|
|
ICICIGI
|
1654.95
|
29,14,500
|
-3.82 per cent
|
6.84 per cent
|
|
DRREDDY
|
6228.95
|
22,79,875
|
-3.45 per cent
|
6.69 per cent
|
|
ZEEL
|
157.25
|
13,12,80,000
|
-3.14 per cent
|
7.12 per cent
|
|
VOLTAS
|
1096.85
|
91,62,000
|
-1.86 per cent
|
1.13 per cent
|
|
ZYDUSLIFE
|
931.45
|
65,24,100
|
-1.69 per cent
|
4.51 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.