What does the Futures and Options Market suggest about trade on February 22?
The Nifty 50 put call ratio (PCR) closed at 0.71 for the day.
Nifty saw a short-buildup on Monday, where price slipped by 0.80 per cent and OI increased by 3.58 per cent, as Nifty Bank created a short-buildup, tumbled by 0.57 per cent and OI increased by 6.35 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 22 stands at 22050.
Call Options Data
In the weekly options data analysis, the 22500 strike emerges as a significant resistance level for the Nifty in the short term, boasting the highest Call open interest at 2,80,434 contracts. This level is crucial for traders to monitor. Subsequently, the 22200 strike holds notable open interest with 2,78,921 contracts, while the 22300 strike follows closely with 2,09,351 contracts.
Observing Call writing activities, there is substantial activity at the 22200 strike, evidenced by the addition of 1,72,949 contracts. Additionally, the 22500 and 22300 strikes witness meaningful Call writing, accumulating 1,70,948 and 1,28,295 contracts, respectively. These levels suggest potential resistance zones.
On the other hand, notable Call unwinding is observed at the 22950 strike, shedding 6,966 contracts. The 23250 and 23700 strikes also experience significant Call unwinding, relinquishing 5,927 and 4,580 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 21500 strike, making it a crucial support level, evidenced by 1,95,877 contracts. The subsequent significant support areas include the 22000 strike with 1,59,755 contracts and the 21800 strike with 1,37,208 contracts.
There was substantial Put writing at the 22500 strike, where 86,694 contracts were added. Additionally, meaningful Put writing activity was observed at the 22900 and 22800 strikes, contributing 41,510 and 36,502 contracts, respectively.
Conversely, Put unwinding took place at the 22100 strike, witnessing a reduction of 42,640 contracts. The 21400 strike and 21150 strike also experienced Put unwinding 29,319 and 26,933 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
|
|
ABB
|
5017.90
|
19,53,375
|
10.72 per cent
|
21.42 per cent
|
|
PEL
|
922.05
|
1,56,54,000
|
3.67 per cent
|
26.56 per cent
|
|
DLF
|
886.00
|
3,76,20,000
|
2.56 per cent
|
7.39 per cent
|
|
JINDALSTEL
|
772.25
|
2,71,27,500
|
1.59 per cent
|
2.59 per cent
|
|
GODREJPROP
|
2339.00
|
49,54,250
|
1.49 per cent
|
0.89 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
|
|
IDEA
|
15.30
|
2,08,17,60,000
|
-4.37 per cent
|
1.90 per cent
|
|
MPHASIS
|
2654.95
|
37,81,525
|
-4.16 per cent
|
1.96 per cent
|
|
BPCL
|
635.35
|
3,56,85,000
|
-3.93 per cent
|
7.86 per cent
|
|
ABFRL
|
226.70
|
5,02,71,000
|
-3.88 per cent
|
16.30 per cent
|
|
BHEL
|
222.70
|
10,01,07,000
|
-3.76 per cent
|
7.32 per cent
|
Disclaimer: The article is for informational purposes only and not investment advice.