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

Highest put option open interest contract was added at a strike price of 17200 for expiry on December 16.

Taking cues from the Asian peers and the previous day negative close of the US market, the Indian equity market too opened with a gap down. Nifty 50 opened with a gap down of 85 points and extended the loss in the first two hours of the trade. Nevertheless, it bounced back in the latter half of the trade and was once trading in green. Nonetheless, profit booking on the higher side led to a slide in the index in the latter half of the day.  Looking at VIX and F&O action, we do not see much downfall from hereon.

Activity on the F&O front for weekly expiry on December 16 shows 18000 to act as a strong resistance now. Highest open interest contract of 160349 stood at this strike price. The second-highest call option open interest 153080 for Nifty 50 stood at a strike price of 17600. In terms of the highest addition of open interest in the call options front, it was at 17400 in the last trading session. A total of 44617 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 17300 (29452 open interest added on 2021-12-14), followed by 17200 (14841 open interest added on 2021-12-14). Highest total put open interest (88717) stood at a strike price of 17000. This is followed by a strike price of 17300, which saw a total put option open interest of 78828 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.

Max pain at the end of today's trade stands at 17350.