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

Highest call option open interest contract was added at a strike price of 17300 for expiry on February 10.

In a very volatile session, Nifty 50 closed in the green after a gap of three trading sessions. It started with a positive note, however, soon slipped into the red and breached 17050 level. Nonetheless, it recovered from there and closed by 0.31% or 53.15 points at 17266.75. Broader market underperformed the frontline market and it was in favour of declines as the breadth of the market was in favour of declines. BSE Midcap index fell 0.55% while Smallcap index fell 1.39%. The European market was trading in the green after the European Central Bank chief eased concerns around faster monetary policy tightening this year.

Activity on the F&O front for weekly expiry on February 10 shows 17500 to act as a strong resistance now. Highest open interest contract of 165253 stood at this strike price. The second-highest call option open interest 145304 for Nifty 50 stood at a strike price of 17800. In terms of the highest addition of open interest in the call options front, it was at 17300 in the last trading session. A total of 45112 open interest was added at this strike price.

 In terms of put activity, the highest put writing was seen at a strike price of 16500, where 26465 open interest was added today followed by 17200 where (25536) open interest was added. Highest total put open interest (100627) stood at a strike price of 17000. This is followed by a strike price of 16500, which saw a total put option open interest of 89753 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.54 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 17300.