Market watch: What does the F&O market suggest about trade on December 3?

The Nifty 50 put call ratio (PCR) closed at 1.37 compared to 0.87 in the previous trading session.

December is proving to be good for the Indian equity market as frontline equity indices gained on both the trading days of the month. Nifty 50 has gained more than 400 points in the last two trading sessions. In today’s trade Nifty 50 closed up by 234.75 points or 1.37 per cent. This is despite a negative handover from the US market. Even in today’s trade most of the European markets are currently trading in red. It seems that base has been formed around 17000 mark for Nifty 50. 

Activity on the F&O front for weekly expiry on December 9 shows 18,000 to act as a resistance. The highest call option open interest (41,200) for Nifty 50 stood at a strike price of 18,000. In terms of the highest addition of open interest in the call options front, it was at 17,400 in the last trading session. A total of 23,576 open interest was added at this strike price. The next highest call option open interest stands at 17,400 where total open interest stood at 38,946.  

In terms of put activity, the highest put writing was seen at a strike price of 17,300 (41,464 open interest added on December 2), followed by 17,000 (41,119 open interest added on December 2).  

Highest total put open interest (62,472) 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 52,112 contracts.  

The Nifty 50 put call ratio (PCR) closed at 1.37 compared to 0.87 in the previous trading session. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.