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: 2022-03-04T17:03:37+05:30

Highest put option open interest contract was added at a strike price of 14750 for expiry on March 10.

Indian equity market fell for the third day in a row thanks to the continued war in Ukraine. Nifty 50, tracking the SGX Nifty opened in red with a gap down of almost 160 points at 16339.45 against the previous close of 16498.05. In the end, market closed with a cut of 252.7 points or 1.53% at 16245.35. All sectoral indices except for IT, ended in the negative in today’s trade with Realty, Metals, Consumer Durables, Auto and Telecom leading the losers.

Globally as well Indian equity markets are sulking and trading in red. Asian markets closed in red while the European market is also trading in red with a cut of more than 2%.

Activity on the F&O front for weekly expiry on March 10 shows 17500 to act as a strong resistance now. Highest open interest contract of 131976 stood at this strike price. The second-highest call option open interest 102397 for Nifty 50 stood at a strike price of 17000. In terms of the highest addition of open interest in the call options front, it was at 17500 in the last trading session. A total of 89228 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 14750, where 27155 open interest was added today, followed by 16300 strike price where (22806) open interest was added. Highest total put open interest (52687) stood at a strike price of 15000. This is followed by a strike price of 16000, which saw a total put option open interest of 48767 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.47 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 for weekly expiry onMarch 10 stands at 16400.

Top five call and put open interest with their strike price

Strike Price  

Open Interest (Call)  

17500  

131976  

17000  

102397  

18000  

71304  

19800  

66694  

17200  

57485  

Strike Price  

Open Interest (Put)  

15000  

52687  

16000  

48767  

15500  

45762  

14800  

42098  

14750  

38648 


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