Market watch: What do the futures and options markets suggest about trading on May 16?















The Nifty 50 put call ratio (PCR) closed at 0.42 for the day.





Taking a cue from SGX Nifty and pulling US stock indices off their lows, the domestic stock market also opened in the green, but lost all of its gain in the latter part of the day. Nifty 50 opened at 15977.00 against the previous close of 15808.00, which means a gap of 169.00 points. It hit an intraday high of 16083 but by the end of the session it closed in the red with a drop of 25.85 points.



In today’s trade, the best performing index was NIFTY AUTO, it was up 2.44%. Next is NIFTY FMCG, which rose 1.84%. The worst performing index in today’s trading was NIFTY METAL. It is down 2.08%. Nifty VIX opened at 24.265 and closed at 23.485 with a loss of 3.21%.



Activity on the F&O front for the weekly expiry on May 19 shows that 17,000 is now acting as strong resistance. The highest open interest contract of 124887 was at this strike price. The second highest open interest for the 91193 call option for Nifty 50 was at a strike price of 16800. In terms of highest open interest on the call options front, it was at 16800 during the last trading session. A total of 60,841 open interests were added to this strike price.



In terms of sell activity, the highest sell entry was seen at a strike price of 15000 where 32124 open interest was today, followed by a strike price of 14700 where (28309 ) open interest has been added. The highest total open interest (63513) was at a strike price of 15000. This is followed by a strike price of 14700, which saw a total put option open interest of 51269 contracts.



The Nifty 50 put call ratio (PCR) closed at 0.42 for the day. A PCR greater than 1 is considered bullish while a PCR less than 1 is considered bearish.



The maximum pain at the end of today’s trade for a weekly expiry on May 19 is at 15900.


The top five call and put open interest with their strike price
















Strike price

Open interest (call)

17000

124887

16800

91193

16000

90147

19500

89311

16100

82334

Strike price

Open Interest (Put)

15000

63513

14700

51269

15500

47047

15800

43557

16000

42633


































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