F&O Market Watch: What does the Futures and Options Market suggest about trade on March 5?
The Nifty 50 put call ratio (PCR) closed at 1.15 for the day.
Nifty saw a short-build up on Monday, where price slipped by 0.27 per cent and OI decreased by 5.84 per cent, as Nifty Bank created a long-build up, soared by 0.45 per cent and OI increased by 16.50 per cent.
Nifty
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Nifty Bank
The Nifty 50 put call ratio (PCR) closed at 1.15 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 1,61,307 contracts. This level is crucial for traders to monitor. Subsequently, the 22400 strike holds notable open interest with 1,30,334 contracts, while the 22800 strike follows closely with 1,20,632 contracts.
Observing Call writing activities, there is substantial activity at the 22650 strike, evidenced by the addition of 27,915 contracts. Additionally, the 22500 and 22350 strikes witness meaningful Call writing, accumulating 19,461 and 18,797 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 23200 and 23300 strike, shedding 13,986 and 13,833 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 22200 strike, making it a crucial support level, evidenced by 1,64,995 contracts. The subsequent significant support areas include the 22000 strike with 1,52,935 contracts and the 21700 strike with 1,13,128 contracts.
There was substantial Put writing at the 21750 strike, where 32,867 contracts were added. Additionally, meaningful Put writing activity was observed at the 21800 and 21650 strikes, contributing 20,368 and 15,789contracts, respectively.
Conversely, Put unwinding took place at the 21000 strike and 22400 strike also experienced Put unwinding 40,218 and 37,569 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
|
|
MOTHERSON
|
127.15
|
11,82,00,800
|
5.56 per cent
|
15.73 per cent
|
|
TATACHEM
|
1064.65
|
1,40,22,250
|
5.50 per cent
|
3.18 per cent
|
|
VEDL
|
289.40
|
12,85,17,100
|
4.01 per cent
|
4.45 per cent
|
|
TATAMOTORS
|
1026.10
|
6,99,09,075
|
3.39 per cent
|
10.78 per cent
|
|
BOSCHLTD
|
30399.95
|
2,62,950
|
3.01 per cent
|
6.41 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
|
|
RBLBANK
|
257.85
|
7,07,20,000
|
-6.22 per cent
|
14.90 per cent
|
|
PEL
|
929.40
|
1,19,60,250
|
-4.53 per cent
|
3.07 per cent
|
|
BAJAJFINSV
|
1556.30
|
1,07,43,500
|
-4.50 per cent
|
12.46 per cent
|
|
BAJFINANCE
|
6360.00
|
1,08,83,250
|
-4.14 per cent
|
14.06 per cent
|
|
VOLTAS
|
1076.00
|
86,32,800
|
-3.75 per cent
|
7.90 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.