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: 2022-12-13T16:14:11+05:30

17,500 will act as key support while 18,000 will be strong resistance.

Last week was one of the worst in recent times in terms of performance for the Indian equity market. Nifty 50 posted its worst weekly performance in the last eight months. It lost 2.45% last week. What led to such bad performance was relentless selling by FIIs. After a volatile session on October 29, Nifty fell once again and at the close was down 1.04% or 185.6 points to 17671.6.

Activity on the F&O market for the weekly expiry on November 3, 2021, shows 18,000 will act as strong resistance now. Call open interest for weekly expiry stood at this strike (18,000) the highest. This is followed by 19,000 where total open interest stood at 1,10,703. In terms of the highest addition of open interest on the Friday trading session 83,375 was added at the strike price of 18,000.

In terms of put activity that will give a sense of support, the highest put writing was seen at a strike price of 16000 (22,017 contracts added on October 29), followed by 16,500 (19,522 contracts added on October 29), while there was put unwinding at strike price 18100 (8372 contracts shed), followed by 18,300 (6771 contracts shed).

Highest total put open interest (44,769) stood at a strike price of 17,000. This is followed by a strike price of 17,500, which saw a total put option of 43,786 contracts, while a strike price of 17,800 has 33,430 contracts in open interest. 

Following table shows the difference between call and put option at strike price near to max pain of 18000.

Strike Price  

Open Interest (Call option)  

Open Interest (Put option)  

Diff(Put – Call)  

17,400.00  

837  

27301  

26464  

17,500.00  

5578  

43786  

38208  

17,600.00  

10249  

30160  

19911  

17700  

26954  

32045  

5091  

17,800.00  

53439  

33430  

-20009  

17,900.00  

48025  

19069  

-28956  

18,000.00  

143674  

31006  

-112668  

The Nifty 50 put call ratio (PCR) closed at 0.47. 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 29 2021  

Oct 28 2021  

Oct 27 2021  

Client  

-22026  

7.03%  

-335526  

-313500  

-346093  

Pro  

10323  

13.94%  

84353  

74030  

5695  

DII  

280  

0.76%  

37014  

36734  

64790  

FII  

11423  

5.63%  

214159  

202736  

275607  

*Change from Previous Day  

   

   

   

   

   

 

   

Index Call Options  

Client Type  

Change of OI*  

% Change of OI*  

Oct 29 2021  

Oct 28 2021  

Oct 27 2021  

Client  

47906  

43.56%  

157890  

109984  

186695  

Pro  

-47831  

34.09%  

-188121  

-140290  

-274052  

DII  

0  

0.00%  

401  

401  

401  

FII  

-75  

-0.25%  

29830  

29905  

86956  

*Change from Previous Day  

   

   

   

   

   

  

   

Net Change in Open Interest  

Client Type  

Change of OI*  

% Change of OI*  

Oct 29 2021  

Oct 28 2021  

Oct 27 2021  

Client  

69932  

16.51%  

493416  

423484  

532788  

Pro  

-58154  

27.13%  

-272474  

-214320  

-279747  

DII  

-280  

0.77%  

-36613  

-36333  

-64389  

FII  

-11498  

6.65%  

-184329  

-172831  

-188651  

*Change from Previous Day  

   

   

   

   

   


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