Market watch: What does the F&O market suggest about trade on January 13?

The Nifty 50 put call ratio (PCR) closed at 1.29 for the day.

Tracking the positive cues overnight from the US equity market after Federal Reserve Chair Jerome Powell's comments, Nifty 50 continued to show strength. It rose for the fourth straight session. At close, Nifty was up 0.87 per cent or 156.6 points at 18212.3. Interestingly, it crossed 18200 marks after a gap of 10 weeks. Now, the market is slated to gain further and it is reflected in the action in the F&O segment. Nifty VIX also saw a drop of 3.24 per cent. 

Activity on the F&O front for weekly expiry tomorrow shows 18500 to act as a strong resistance now. Highest open interest contract of 133253 stood at this strike price. The second-highest call option open interest 121836 for Nifty 50 stood at a strike price of 18400. In terms of the highest addition of open interest in the call options front, it was at 18500 in the last trading session. A total of 132130 open interest was added at this strike price.  

Activity on the F&O front for weekly expiry tomorrow shows 18500 to act as a strong resistance now. Highest open interest contract of 133253 stood at this strike price. The second-highest call option open interest 121836 for Nifty 50 stood at a strike price of 18400. In terms of the highest addition of open interest in the call options front, it was at 18500 in the last trading session. A total of 132130 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 17700 (129009) open interest added on (12-Jan-2022), followed by 18000 where (106747) open interest was added on January 12. Highest total put open interest (129161) stood at a strike price of 17700. This is followed by a strike price of 18000, which saw a total put option open interest of 106766 contracts. 

The Nifty 50 put call ratio (PCR) closed at 1.29 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 stands at 18150. 

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