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

Highest put option open interest contract was added at a strike price of 17700 for expiry on 06-Jan-2022.

All the three trading days of new year has seen bull taking control of the market. Equity market rose for the third straight day today. In all these days, Nifty 50 has gained in double digit. Today at close Nifty was up 0.67% or 120 points at 17925.3.  India's services sector purchasing managers index came in at three months low, however, market looked the positive side of it remained in expansion zone.

Activity on the F&O front for weekly expiry on 06-Jan-2022 shows 18000 to act as a strong resistance now. Highest open interest contract of 138883 stood at this strike price. The second-highest call option open interest 116768 for Nifty 50 stood at a strike price of 18100. In terms of the highest addition of open interest in the call options front, it was at 18100 in the last trading session. A total of 97730 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 17800 (117564 open interest added on 05-Jan-2022), followed by 17700 where (93599) open interest added on 05-Jan-2022. Highest total put open interest (118419) stood at a strike price of 17800. This is followed by a strike price of 17000, which saw a total put option open interest of 114333 contracts.

The Nifty 50 put call ratio (PCR) closed at 1.48 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 stand at 17850