What does the F&O market suggest about todays trade?

The Indian equity market remained quite volatile in yesterday’s trade. Although Nifty 50 traded in a tight range of 300 points, within this range it saw its share of volatility. 

The highest put writing was seen at strike price 17,600 (11,361 contracts added on October 25), followed by 17,400 (11,235 lakh contracts added on October 25), while there was put unwinding at strike price 16,000 (8519 contracts shed), followed by 18,200 (8280 contracts shed). 

Highest total put open interest of 81062 contracts stood at strike price 18,000, which will act as a crucial base for the market in the October series. This is followed by strike price 17500, which saw a total put option of 78,776 contracts, while strike price 17,000 had 74,779 contracts in open interest. 

On the call options front, maximum open interest was at strike price 19000, which stood as a strong resistance. Total call open interest of 141743 contracts stood at a strike price of 19,000. Call writing was seen at strike prices of 18,900 and 18,600. Total open interest for the strike price of 18,900 and 18,600 stood at 70598 and 82820 respectively. 

The Nifty 50 put call ratio (PCR) closed at 0.64. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish. 

 Following table shows the participant-wise action of key players on the index options front.