Market watch: What does the Futures and Options market suggest about trade on January 24?

The Nifty 50 put call ratio (PCR) closed at 0.96 for the day.

Nifty saw a significant short-buildup today, where price tanked 1.86 per cent and OI increased by13.96 per cent, as reflected by Nifty Bank creating a short-buildup, declining by 2.61 per cent and OI increasing by 28.59 per cent.

Nifty

Nifty Bank

The Nifty 50 put call ratio (PCR) closed at 0.96 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 for weekly expiry on January 23 stands at 21400.

Call Options Data

In the weekly options data analysis, the 22000 strike emerges as a significant resistance level for the Nifty in the short term, boasting the highest Call open interest at 2,08,335 contracts. This level is crucial for traders to monitor. Subsequently, the 21700 strike holds notable open interest with 2,01,126 contracts, while the 21500 strike follows closely with 1,66,791 contracts.

Observing Call writing activities, there is substantial activity at the 21300 strike, evidenced by the addition of 94,775 contracts. Additionally, the 21400 and 21200 strikes witness meaningful Call writing, accumulating 88,676 and 75,340 contracts, respectively. These levels suggest potential resistance zones.

On the other hand, notable Call unwinding is observed at the 22400 strike, shedding 32,973 contracts. The 22,400 and 22,600 strikes also experience significant Call unwinding, relinquishing 20,068 and 14,146 contracts, respectively. This unwinding could indicate a weakening of resistance at these levels.

Put Options Data

In the options market for Nifty, notable open interest on the Put side is concentrated at the 20500 strike, making it a crucial support level, evidenced by 1,56,188 contracts. The subsequent significant support areas include the 21000 strike with 1,50,510 contracts and the 21200 strike with 1,11,239 contracts.

There was substantial Put writing at the 17350 strike, where 73,542 contracts were added. Additionally, meaningful Put writing activity was observed at the 21200 and 20800 strikes, contributing 50,143 and 37,662 contracts, respectively.

Conversely, Put unwinding took place at the 21500 strike, witnessing a reduction of 65,631 contracts. The 21600 strike and 21650 strike also experienced Put unwinding, shedding 55,654 and 20,321 contracts, respectively.

Long build-up Stocks

Following scrips were among stocks that had a long build-up. A rise in open interest (OI) and price suggests a concentration of long holdings.

Short build-up Stocks

A short build-up was seen in these stocks. An increase in OI along with a fall in price points to a build-up of short positions.