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

Going ahead in short term, 17,500 to act as a key pivot point for Nifty 50.

The Indian equity market hit a hattrick today and was up for the third day in a row. From the lows of Monday (December 6), frontline equity indices are up by 3.6%. In today’s trade market opened on a positive note on the back of better handover from the US equity market. Since it was weekly expiry there was some amount of volatility and Nifty and Sensex were swinging between negative and positive, however, in the end, both the indices closed with a gain of more than 0.2%.

Activity on the F&O front for weekly expiry on December 16, 2021, shows 17500 to act as a pivot point for the market in the near term. Highest open interest contract of 42,720 stood at this strike price. The second-highest call option open interest 41,778 for Nifty 50 stood at a strike price of 18500. In terms of the highest addition of open interest in the call options front, it was at 18500 in the last trading session. A total of 37,247 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 17500 (33917) open interest added on December 9, followed by 15500 where 30,757 open interest was added. Highest total put open interest (40848) stood at a strike price of 17500. This is followed by a strike price of 17200, which saw a total put option open interest of 38707 contracts.

The Nifty 50 put call ratio (PCR) closed at 1.26 for the day. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.