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: Dec 06, 2021, 06:06 PM IST

Highest put option open interest contract was added at a strike price of 17,200 for expiry on December 9.

The structure of the market has changed for the worse now. Every attempt by the bulls to lift the market has been met by ferocious bears. This is the second day in a row when the Nifty 50 has fallen by more than 200 points. In today’s trade not a single company from Sensex closed in green and in Nifty 50 it was only UPL that remained the sole company to close in green. At the closing bell on Monday, frontline indices saw a fall of 1.65% from their previous close. What is leading to such a fall is relentless selling by FIIs and uncertainty around the new strain of coronavirus.

Activity on the F&O front for weekly expiry on December 09 shows 17500 to act as a strong resistance now. Highest open interest contract of 157587 stood at this strike price. The second-highest call option open interest 133541 for Nifty 50 stood at a strike price of 18000. In terms of the highest addition of open interest in the call options front, it was at 17200 in the last trading session. A total of 67630 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 16900 (22830 open interest added on December 6), followed by 16000 (15956 open interest added on December 6). Highest total put open interest (69645) stood at a strike price of 16000. This is followed by a strike price of 16500, which saw a total put option open interest of 56692 contracts.

Following table shows the difference between call and put options at strike price near to max pain of 17050. 

Strike Price  

Call  

Put  

Diff  

16,800.00  

7755  

42035  

34280  

16,900.00  

28788  

54526  

25738  

17,000.00  

56486  

55649  

-837  

17100  

73765  

28727  

-45038  

17,200.00  

104342  

35068  

-69274  

17,300.00  

111553  

13953  

-97600  

17,400.00  

110896  

9718  

-101178  

 
The Nifty 50 put call ratio (PCR) closed at 0.44 for the day. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.

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SENSEX
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1,534.16 (2.91%)
Nifty 50
16,266.15
456.75 (2.89%)
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960.75 (2.88%)
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