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

Highest put option open interest contract was added at a strike price of 17800 for expiry on January 20.

Indian equity market (Nifty 50) today started with a gap-up of 29 points. But soon after the first five minutes of trade, began to tumble. In a matter of an hour markets fell close to 1% marking a day’s low of 18,186.20. Although it tried to surge from that level but failed to breach today’s high of 18,350.95 before it finally closed at 18,113.80. Despite such a performance, certain pockets such as banks, financial services and oil and gas outperformed Nifty 50. The broader market underperformed the frontline index. Hike in US treasury led to such fall and even the European market has traded in deep red.

Activity on the F&O front for weekly expiry on January 20 shows 18300 to act as a strong resistance now. Highest open interest contract of 154679 stood at this strike price. The second-highest call option open interest 129103 for Nifty 50 stood at a strike price of 18400. 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 59831 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 (5725) open interest added on January 18, followed by 17700 where (2704) open interest was added. Highest total put open interest (86166) 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 85807 contracts.
 

The Nifty 50 put call ratio (PCR) closed at 0.59 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 18200.