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

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

by 5paisa Research Team Last Updated: 2022-02-03T17:01:39+05:30

Highest put option open interest contract was added at a strike price of 17000 for expiry on February 10.

After rising for three days in a row by more than 200 points, the Indian equity market finally closed in red with a loss of 220 points. Nifty closed at 17,560 down by 1.24% from yesterday’s close. Nifty 50 opened marginally lower, however, continued to drift downward for the entire trading day. Most of the sectoral indices closed in red in today’s trade and the breadth of the trade was in favour of declines. For every 126 companies whose share advanced in today’s trade, 276 companies saw their share price declining. The worst performing sector was once again IT, which declined due to bad results posted by Meta. Nifty Auto was the best performing sector in today’s trade.

Activity on the F&O front for weekly expiry on February 10 shows 18500 to act as a strong resistance now. Highest open interest contract of 71862 stood at this strike price. The second-highest call option open interest 65537 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 18500 in the last trading session. A total of 52173 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, where 24879 open interest was added today, followed by 16000 where (22891) open interest was added. Highest total put open interest (42038) stood at a strike price of 17000. This is followed by a strike price of 17500, which saw a total put option open interest of 38818 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.62 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 17600.

Strike Price  

Open Interest (Call)  

18500  

71862  

18000  

65537  

17800  

59955  

17900  

48028  

17700  

47176  

Strike Price  

Open Interest (Put)  

17000  

42038  

17500  

38818  

16000  

32470  

16500  

28050  

17600  

25741  


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