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

Highest put option open interest contract was added at a strike price of 17100 for expiry on December 16. 

The Indian equity market underperformed the global peers in today’s trading. Despite getting a positive handover from the US market and opening in green, frontline indices failed to build on that. After touching an intraday high of 17,639 markets fell by 271 points from their high. At close, Nifty was down 0.82% or 143 points at 17368. One of the reasons for such fall is market participants being nervous as few of central bank meets this week and warning from UK Prime Minister about ‘tidal wave’ of Omicron.

Activity on the F&O front for weekly expiry on December 16 shows 17600 to act as a strong resistance now. The highest open interest contract of 137757 stood at this strike price. The second-highest call option open interest 134799 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 17600 in the last trading session. A total of 85399 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 17000, (20,987) open interest was added on (2021-12-13 ), followed by 17100 where 13352 open interest was added on 2021-12-13. The highest total put open interest (77034) stood at a strike price of 17000. This is followed by a strike price of 17400, which saw a total put option open interest of 66414 contracts.
 

The Nifty 50 put call ratio (PCR) closed at 0.55 for the day. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.