Market watch: What does the Futures and Options market suggest about trade on January 18?
The Nifty 50 put call ratio (PCR) closed at 0.55 for the day.
On Wednesday, frontline indexes ended the trading day on a dismal note, with the Sensex closing 2.23 per cent lower at 71,500.76, and the Nifty falling 2.09 per cent to 21,571.95. Similarly, broader indexes finished slightly down, with Nifty Mid-Cap down 1.08 per cent and Nifty Small-Cap down 1.2 per cent. The India VIX index has risen by 11.73 per cent, indicating a significant increase in market volatility. Nifty IT was the only major sector that traded positively, while Nifty Bank, Nifty Financial Services, Nifty Metal, and Nifty PSU Bank were among the worst performers.
Activity on the F&O front for weekly expiry on January 18 shows 21,800 to act as a strong resistance now. The highest call open interest contract of 2,88,151 stood at this strike price. The second-highest call option open interest 2,27,063 for Nifty 50 stood at a strike price of 22,000. In terms of the highest addition of open interest in the call options front, it was at 21,800 in the last trading session. A total of 2,64,530 open interest was added at this strike price.
In terms of put activity, the highest put writing was seen at a strike price of 21,000, where 76,169 open interest was added today, followed by a 21,100 strike price where 31,756 open interest was added. Highest total put open interest 1,99,742 stood at a strike price of 21,000. This is followed by a strike price of 21,500, which saw a total put option open interest of 1,42,554 contracts.
The Nifty 50 put call ratio (PCR) closed at 0.55 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 January 18 stands at 21700.
Top five call and put open interest with their strike price
|
Call OI
|
Strike Price
|
|
2,88,151
|
21,800
|
|
2,27,063
|
22,000
|
|
2,16,425
|
22,100
|
|
2,02,795
|
21,700
|
|
1,95,725
|
22,500
|
|
Strike Price
|
Put OI
|
|
21,000
|
1,99,742
|
|
21,500
|
1,42,554
|
|
21,300
|
1,09,908
|
|
21,400
|
1,09,208
|
|
21,100
|
89,728
|
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ offers a service 'Pop Options" with recommendations for profitable options based on research and analysis to help subscribers make healthy profits. If this interests you, then do download the service details pdf here