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

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

by 5paisa Research Team Last Updated: 2022-04-04T12:49:02+05:30

Activity on the F&O market for the weekly expiry on November 3, 2021, shows 18,000 will act as strong resistance now.

The Indian equity market remained one of the worst-performing markets globally yesterday. This was led by weak global cues along with monthly F&O expiry. Frontline equity index Nifty 50 saw a fall of 2%, the highest fall since April 2021. In terms of sectoral indices Bank Nifty fell by almost 3%. FIIs continued their selling spree and have sold equity worth Rs 10,000 crore in the last five trading sessions.

Activity on the F&O market for the weekly expiry on November 3, 2021, shows 18,000 will act as strong resistance now. The highest put writing was seen at strike price of 17000 (20,552 contracts added on October 28), followed by 17,500 (17039 contracts added on October 27), while there was put unwinding at strike price 18200 (3324 contracts shed), followed by 18,250 (1026 contracts shed). Highest total put open interest (31010) stood at a strike price of 18,000. Although Nifty is trading below this level, it is likely that in the next few trading sessions market is likely to move towards the 18,000 level. This is followed by a strike price of 17,000, which saw a total put option of 27,767 contracts, while a strike price of 17,500 has 27,363 contracts in open interest.

In terms of overall open interest on the call option side, maximum open interest stood at strike price of 20000. Total call open interest of 67256 contracts stood at a strike price of 20,000. This was followed by a strike price of 18000 where 50374 contracts were added in open interest.

Following table shows the difference in open interest between call and put options at the different strike prices.

Strike Price  

Open Interest (Call option)  

Open Interest (Put option)  

Diff(Put – Call)  

17,600.00  

948  

20716  

19768  

17,700.00  

1893  

19973  

18080  

17,800.00  

10114  

25560  

15446  

17900  

17593  

22943  

5350  

18,000.00  

60299  

31010  

-29289  

18,100.00  

49523  

15457  

-34066  

18,200.00  

51460  

15403  

-36057  

The Nifty 50 put call ratio (PCR) closed at 0.52. 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*  

Oct 28 2021  

Oct 27 2021  

Oct 26 2021  

Client  

32593  

-9.42%  

-313500  

-346093  

-261825  

Pro  

68335  

1199.91%  

74030  

5695  

-52725  

DII  

-28056  

-43.30%  

36734  

64790  

64190  

FII  

-72871  

-26.44%  

202736  

275607  

250360  

*Change from Previous Day  

   

   

   

   

   

 

   

Index Call Options  

Client Type  

Change of OI*  

% Change of OI*  

Oct 28 2021  

Oct 27 2021  

Oct 26 2021  

Client  

-76711  

-41.09%  

109984  

186695  

9682  

Pro  

133762  

-48.81%  

-140290  

-274052  

-109292  

DII  

0  

0.00%  

401  

401  

401  

FII  

-57051  

-65.61%  

29905  

86956  

99210  

*Change from Previous Day  

   

   

   

   

   

 

   

Net Change in Open Interest  

Client Type  

Change of OI*  

% Change of OI*  

Oct 28 2021  

Oct 27 2021  

Oct 26 2021  

Client  

-109304  

-20.52%  

423484  

532788  

271507  

Pro  

65427  

-23.39%  

-214320  

-279747  

-56567  

DII  

28056  

-43.57%  

-36333  

-64389  

-63789  

FII  

15820  

-8.39%  

-172831  

-188651  

-151150  

*Change from Previous Day  

   

   

   

   

   


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