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

Highest call option open interest contract was added at a strike price of 17400 for expiry on February 17.

The Indian equity market ended in deep red in today’s trade. Out of 50 stocks in Nifty, 44 stocks closed in red in today’s trade. Frontline indices are down by more than 1% and even for the week, it is down by 0.5%. All the sectoral indices closed in red in today’s trade. Such a poor performance was primarily due to weak global cues after a higher inflation number recorded in the US. All the major global equity indices are trading in red except for NIKKEI 225 Index. European equity indices are trading with a cut of more than 1% currently.

Activity on the F&O front for weekly expiry on February 17 shows the highest open interest contract of 91016 stood at 18,000 strike price. The second-highest call option open interest 78180 for Nifty 50 stood at a strike price of 17500, which will act as resistance now. In terms of the highest addition of open interest in the call options front, it was at 17400 in the last trading session. A total of 60066 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 16300, where 48960 open interest was added today, followed by 17100 where (42132) open interest was added. Highest total put open interest (63782) 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 63154 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.81 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 17400.