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

The highest put option open interest contract was added at a strike price of 16,200 for the expiry on March 17, 2022.

The frontline equity indices in India gained for the fifth day in a row. Sensex topped 56,000 while Nifty 50 passed 16,800 in today’s trade. Tracking the development between Russia and Ukraine, Nifty 50 gained 1.45% in today’s trade and remained the best performer in the Asian equity market. Nifty 50 opened at 16,633.7 against the previous close of 16,630.45. It closed with a gain of 240.85 points. It was led by frontline IT names and private sector banking names such as HDFC Bank & ICICI Bank.  

Activity on the F&O front for the weekly expiry on March 17, 2022, indicates 17,500 to act as a strong resistance now. The highest open interest contract of 1,11,514 stood at this strike price. The second-highest call option open interest 80,529 for Nifty 50 stood at a strike price of 17,000. In terms of the highest addition of open interest in the call options front, it was at 16,900 in the last trading session. A total of 32,037 open interests were added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 16,200, where 26,733 open interest was added on March 14, 2022, followed by 15,150 strike price, where (26,146) open interest was added today. The highest total put open interest (93,687) stood at a strike price of 16,000. This is followed by a strike price of 15,500, which saw a total put option OI of 59,823 contracts.

 Nifty 50 put-call ratio (PCR) closed at 0.9 for the day. A PCR above one is considered bullish while a PCR below one is considered bearish.

Max Pain at the end of today's trade for the weekly expiry on March 17, 2022, stands at 16,700.

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

Top five call and put open interest with their strike price