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

Highest put option open interest contract was added at a strike price of 17500 for expiry on January 20.

Nifty 50 after a gap of almost two and half months has reclaimed 18,300 level. Though in the morning, it opened with a gap down of 20 points tracking SGX Nifty, in the end, it closed with a gain of 0.29% or 52.3 points at 18308.1. Nifty AUTO remains the best performing index while Nifty Pharma and Healthcare Index are the worst-performing sectors in today’s trade. Asian markets remain mixed while the European market is trading in green.

Activity on the F&O front for weekly expiry on January 20 shows the highest call option open interest at19000 strike price. Highest open interest contract of 113445 stood at this strike price. The second-highest call option open interest 98636 for Nifty 50 stood at a strike price of 18300. In terms of the highest addition of open interest in the call options front, it was at 18300 in the last trading session. A total of 27490 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 where 92648 open interest was added on January 17, followed by 18300 where 31375 open interest was added. Highest total put open interest (142999) stood at a strike price of 17500. This is followed by a strike price of 18000, which saw a total put option open interest of 104156 contracts.

The Nifty 50 put call ratio (PCR) closed at 1.1 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 18250.