Futures and Options Market Watch: What does the Futures and Options Market suggest about trade on February 6?
The Nifty 50 put call ratio (PCR) closed at 0.71 for the day. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.
Nifty saw a short-buildup today, where price dropped by 0.74 per cent and OI increased by 0.77 per cent, Nifty Bank created a long-unwinding, slipped by 0.60 per cent and OI dropped by 0.52 per cent.
Nifty
Nifty Bank
The Nifty 50 put call ratio (PCR) closed at 0.71 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 February 8 stands at 21800.
Call Options Data
In the weekly options data analysis, the 22000 strike emerges as a significant resistance level for the Nifty in the short term, boasting the highest Call open interest at 1,48,415 contracts. This level is crucial for traders to monitor. Subsequently, the 23000 strike holds notable open interest with 1,40,046 contracts, while the 22100 strike follows closely with 1,20,221 contracts.
Observing Call writing activities, there is substantial activity at the 21900 strike, evidenced by the addition of 64,062 contracts. Additionally, the 22000 and 22100 strikes witness meaningful Call writing, accumulating 58,733 and 41,658 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 23300 strike, shedding 7,664 contracts. The 23,100 and 22,200 strikes also experience significant Call unwinding, relinquishing 2,724 and 2,645 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 21000 strike, making it a crucial support level, evidenced by 1,28,278 contracts. The subsequent significant support areas include the 21700 strike with 94,720 contracts and the 21500 strike with 93,746 contracts.
There was substantial Put writing at the 21700 strike, where 20,857 contracts were added. Additionally, meaningful Put writing activity was observed at the 21200 and 21500 strikes, contributing 20,822 and 20,077 contracts, respectively.
Conversely, Put unwinding took place at the 21600 strike, witnessing a reduction of 25,806 contracts. The 22000 strike and 21800 strike also experienced Put unwinding, 5,604 and 3,727 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
|
|
IOC
|
175.60
|
13,41,50,250
|
7.20 per cent
|
15.71 per cent
|
|
TATAMOTORS
|
935.00
|
6,73,04,175
|
5.70 per cent
|
4.80 per cent
|
|
MCX
|
3,862.90
|
25,61,600
|
5.36 per cent
|
11.37 per cent
|
|
COALINDIA
|
438.95
|
7,23,09,300
|
4.94 per cent
|
2.44 per cent
|
|
LUPIN
|
1,579.00
|
76,77,200
|
4.41 per cent
|
8.22 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
|
|
UPL
|
472.15
|
5,44,80,400
|
-12.01 per cent
|
33.40 per cent
|
|
SHREECEM
|
27,003.05
|
2,36,775
|
-5.37 per cent
|
14.98 per cent
|
|
AUROPHARMA
|
1,027.00
|
2,34,23,400
|
-4.32 per cent
|
17.37 per cent
|
|
UBL
|
1,776.55
|
25,98,400
|
-4.22 per cent
|
3.62 per cent
|
|
PIIND
|
3,266.70
|
18,91,000
|
-3.84 per cent
|
8.87 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.