Market watch: What does the F&O market suggest about trade on the weekly expiry day?

The bulls are taking control of the market after being bruised in the first trading session of the week. Two days in a row it gained more than one per cent and highest two-day gain in last nine months. Nifty 50 and Sensex ended the day with a gain of 1.7 per cent. 

Activity on the F&O front for weekly expiry on December 09 shows 17600 to act as a strong resistance now. Highest open interest contract of 121454 stood at this strike price. The second-highest call option open interest 112088 for Nifty 50 stood at a strike price of 17700. In terms of the highest addition of open interest in the call options front, it was at 17650 in the last trading session. A total of 54135 open interest was added at this strike price. 

In terms of put activity, the highest put writing was seen at a strike price of 17400 (103542) open interest added on (2021-12-08), followed by 17300 (95853 open interest added on 2021-12-08). Highest total put open interest (117051) stood at a strike price of 17000. This is followed by a strike price of 17400, which saw a total put option open interest of 113021 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. 

Following table shows the top 5 open interest