Market watch: What does the F&O market suggest about trade on December 6?

The Nifty 50 put call ratio (PCR) closed at 0.59 compared to 1.37 in the previous trading session.

Indian equity market failed to continue its momentum build over the last two trading sessions. Although Nifty opened in green but soon slipped into red. Investors turned cautious as India starts reporting Omicron cases. Nevertheless, overall market breadth was in favour of advances with advance-decline ratio at 5:4. For the entire week frontline equity ended in green after two weeks of negative returns.    

Activity on the F&O front for weekly expiry on December 9 shows 17,500 to act as a strong resistance now. The second-highest call option open interest (111,909) for Nifty 50 stood at a strike price of 17,500. In terms of the highest addition of open interest in the call options front, it was at 17,500 in the last trading session. A total of 79,080 open interest was added at this strike price. The highest call option open interest stands at 18,000 where total open interest stood at 120,573.  

 In terms of put activity, the highest put writing was seen at a strike price of 16,400 (14,594 open interest added on December 3), followed by 16,700 (14,657 open interest added on December 3).  

Highest total put open interest (55,923) stood at a strike price of 17,000. This is followed by a strike price of 16,000, which saw a total put option open interest of 54,874 contracts.  

The Nifty 50 put call ratio (PCR) closed at 0.59 compared to 1.37 in the previous trading session. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.  

The following graphs shows the strike price where highest open interest was either added or shed.The following graphs shows the strike price where highest open interest was either added or shed.