Market watch: What does the Futures and Options market suggest about trade on May 26?

Shashikant Singh
/ Categories: Trending, Mindshare
Market watch: What does the Futures and Options market suggest about trade on May 26?

The Nifty 50 put call ratio (PCR) closed at 0.64 for the day

In a repeat of the last two days' action, Indian equity market once again closed in red after opening in green. Nifty 50 opened at 16196.35 against the previous close of 16125.15, which means a gap up of 71.20 points. Nonetheless, by the end of the day, it closed with a loss of 99.35 points or 0.62 per cent at 16025.8. 

 

Indian equity market remained one of the worst performers in the Asian market. All the sectoral indices closed in red except for finance. Once again broader market underperformed the frontline market. The worst performing index in today's trade was NIFTY SMALLCAP 50. It was down by 3.99 per cent. 

Nifty VIX opened at 25.635 and closed at 25.2825 with a minor loss of 1.37 per cent.

 

Activity on the F&O front for weekly expiry tomorrow shows 16500 to act as a strong resistance now. Highest call open interest contract of 197246 stood at this strike price. The second-highest call option open interest 194603 for Nifty 50 stood at a strike price of 16200. In terms of the highest addition of open interest in the call options front, it was at 16200 in the last trading session. A total of 116045 open interest was added at this strike price.

 

In terms of put activity, the highest put writing was seen at a strike price of 15500, where 24156 open interest was added today, followed by 15650 strike price where (21688) open interest was added. Highest total put open interest (150314) stood at a strike price of 15500. This is followed by a strike price of 16000, which saw a total put option open interest of 141783 contracts. 

 

The Nifty 50 put call ratio (PCR) closed at 0.64 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 tomorrow stands at 16100.

 

Top five call and put open interest with their strike price

Strike Price

Open Interest (Call)

16500

197246

16200

194603

16400

177412

16700

176746

16300

167032

Strike Price

Open Interest (Put)

15500

150314

16000

141783

15800

120248

15000

91827

15700

80855

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