F&O Market Watch: What does the Futures and Options Market suggest about trade on March 4?
The Nifty 50 put call ratio (PCR) closed at 1.25 for the day.
Nifty saw a short-build up on Monday, where price slipped by 0.01 per cent and OI decreased by 1.68 per cent, as Nifty Bank created a long-build up, soared by 0.05 per cent and OI increased by 17.43 per cent.
Nifty
Nifty Bank
The Nifty 50 put call ratio (PCR) closed at 1.25 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 22300.
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 1,73,117 contracts. This level is crucial for traders to monitor. Subsequently, the 22800 strike holds notable open interest with 1,29,608 contracts, while the 22400 strike follows closely with 1,29,202 contracts.
Observing Call writing activities, there is substantial activity at the 22400 strike, evidenced by the addition of 57,320 contracts. Additionally, the 22500 and 22450 strikes witness meaningful Call writing, accumulating 25,301 and 24,741 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 23050 and 22300 strike, shedding 9,485 and 14,319contracts 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 22200 strike, making it a crucial support level, evidenced by 1,71,920 contracts. The subsequent significant support areas include the 20000 strike with 1,60,226 contracts and the 21000 strike with 1,39,308 contracts.
There was substantial Put writing at the 22400 strike, where 54,234 contracts were added. Additionally, meaningful Put writing activity was observed at the 21550 and 22200 strikes, contributing 40,565 and 37,487 contracts, respectively.
Conversely, Put unwinding took place at the 21400 strike and 20800 strike also experienced Put unwinding 20,984 and 16,865 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
|
|
BHEL
|
266.70
|
11,19,30,000
|
12.20 per cent
|
20.85 per cent
|
|
TATACHEM
|
1013.00
|
1,36,38,350
|
4.22 per cent
|
4.66 per cent
|
|
TATACOMM
|
1999.95
|
68,95,000
|
3.72 per cent
|
5.22 per cent
|
|
MGL
|
1563.00
|
23,76,800
|
3.70 per cent
|
10.16 per cent
|
|
NTPC
|
356.65
|
8,95,95,000
|
3.65 per cent
|
2.03 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
|
|
MCX
|
3744.00
|
24,75,200
|
-2.88 per cent
|
1.64 per cent
|
|
LALPATHLAB
|
2290.30
|
12,84,600
|
-2.68 per cent
|
10.50 per cent
|
|
EICHERMOT
|
3772.00
|
41,92,475
|
-2.67 per cent
|
6.09 per cent
|
|
JSWSTEEL
|
830.20
|
1,68,18,300
|
-2.45 per cent
|
4.76 per cent
|
|
CHOLAFIN
|
1082.25
|
1,34,38,750
|
-2.13 per cent
|
4.11 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.