Market watch: What does the F&O market suggest about trade on March 21?

Indian equity market rallied for the second day in a row. This is despite a hike in rate by US Fed, first time in three years. Nifty 50 closed in the green with a gain of 311.70 points. It opened at 17202.9 against the previous close of 16975.35, which means a gap up of 227.55 points and finally closed at 17287.1 level. What helped such a strong rally is softening crude oil prices and a slowdown in FIIs selling. HDFC twins once again supported the market along with Reliance Industries. Nifty VIX opened at 24.11 and closed at 22.61 with a gain loss of 6.25 per cent. 

Activity on the F&O front for weekly expiry on March 24 shows 18000 to act as a strong resistance now. Highest open interest contract of 52228 stood at this strike price. The second-highest call option open interest 38789 for Nifty 50 stood at a strike price of 17500. 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 31147 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 17000, where 41014 open interest was added today, followed by 16000 strike price where (32491) open interest was added. Highest total put open interest (56664) stood at a strike price of 16000. This is followed by a strike price of 17000, which saw a total put option open interest of 47725 contracts.

The Nifty 50 put-call ratio (PCR) closed at 1.12 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 24 stands at 17250.

Top five call and put open interest with their strike price.