F&O Action: Futures and Options market cues for trading on January 20

Tracking global cues, the Indian equity market too saw weakness for the second consecutive day. In yesterday’s trade, we saw a huge cut in the US as well as the European market. There was a huge selloff in tech-heavy Nasdaq. Hence, the IT index remained the worst performer in today’s trade falling by two per cent. Nonetheless, we do not see much downside risk from hereon reflected in a muted rise in Nifty VIX of 0.21 per cent.  

Activity on the F&O front for weekly expiry on January 20 shows 18300 to act as a strong resistance now. Highest open interest contract of 163948 stood at this strike price. The second-highest call option open interest 146573 for Nifty 50 stood at a strike price of 18100. In terms of the highest addition of open interest in the call options front, it was at 18000 in the last trading session. A total of 124091 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 17900 (27715) open interest added on January 19, followed by 17700 where (25873) open interest was added. Highest total put open interest (94980) stood at a strike price of 17500. This is followed by a strike price of 17900, which saw a total put option open interest of 85286 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.49 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 stands at 18000.