F&O Cues: Key support and resistance levels for Nifty 50

resr 5paisa Research Team

Last Updated: 2nd November 2021 - 08:44 am

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For trade on November 2, Nifty F&O action shows 17,800 will act as key support while 18,000 will be strong resistance.

Nifty finally managed to break its three days of losing streak on November 1, trade. Nifty 50 opened on a positive note and after a few bouts of volatility in the initial trade, gained for the entire day. It gained as much as 1.46% in yesterday’s trade (November 1). There were some positive macro-economic numbers such as GST collection and better IHS Markit India Manufacturing Purchasing Managers’ Index for October that helped the market to gain.

Activity on the F&O market for the weekly expiry on November 3, 2021, shows 18,000 will act as first-line resistance now. The highest call option open interest stood at this strike price. Nevertheless, it shed 17608 contracts in yesterday’s trade which shows that call writers are not sure about defending 18,000. The next highest call option open interest stands at 19,000 where total open interest stood at 1,10,316. In terms of the highest addition of call open interest on Monday’s trading session, 20,500 was added at the strike price of 18,300.

In terms of put activity that will give a sense of support, the highest put writing was seen at a strike price of 17800 (54,232 contracts added on November 01), followed by 17,700 (41,217 contracts added on November 01), while there was put unwinding at strike price 16600 (3586 contracts shed), followed by 16,400 (2479 contracts shed).

Highest total put open interest (87,662) stood at a strike price of 17,800. This is followed by strike price 17,700, which saw a total put option open interest of 73,262 contracts, while strike price 17,500 has 72885 contracts in open interest.

Following table shows the difference between call and put options at strike price near to max pain of 17900.

Strike Price  

Open Interest (Call option)  

Open Interest (Put option)  

Diff(Put – Call)  

17,600.00  

6552  

60321  

53769  

17,700.00  

21025  

73262  

52237  

17,800.00  

48186  

87662  

39476  

17900  

44907  

41295  

-3612  

18,000.00  

126066  

43403  

-82663  

18,100.00  

70010  

6039  

-63971  

18,200.00  

100154  

8034  

-92120  

The Nifty 50 put call ratio (PCR) closed at 0.72 much better than 0.47 in the last trading session. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.

Following table shows the participant wise action of key players on the index options front. 

   

Index Put Options  

Client Type  

Change of OI*  

% Change of OI*  

Nov 01 2021  

Oct 29 2021  

Oct 28 2021  

Client  

31957  

9.52%  

-303569  

-335526  

-313500  

Pro  

-30401  

-36.04%  

53952  

84353  

74030  

DII  

4000  

10.81%  

41014  

37014  

36734  

FII  

-5557  

-2.59%  

208602  

214159  

202736  

*Change from Previous Day  

   

   

   

   

   

  

   

Index Call Options  

Client Type  

Change of OI*  

% Change of OI*  

Nov 01 2021  

Oct 29 2021  

Oct 28 2021  

Client  

-149460  

-94.66%  

8430  

157890  

109984  

Pro  

107061  

56.91%  

-81060  

-188121  

-140290  

DII  

0  

0.00%  

401  

401  

401  

FII  

42399  

142.14%  

72229  

29830  

29905  

*Change from Previous Day  

   

   

   

   

   

  

   

Net Change in Open Interest  

Client Type  

Change of OI*  

% Change of OI*  

Nov 01 2021  

Oct 29 2021  

Oct 28 2021  

Client  

-181417  

-36.77%  

311999  

493416  

423484  

Pro  

137462  

50.45%  

-135012  

-272474  

-214320  

DII  

-4000  

-10.93%  

-40613  

-36613  

-36333  

FII  

47956  

26.02%  

-136373  

-184329  

-172831  

*Change from Previous Day  

   

   

   

   

   

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