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: Nov 22, 2021, 05:27 PM IST

Today the Nifty F&O action for November 25 expiry shows support has come down to 17,000 now from 17,500 earlier.

The Indian equity market closed in red for the fourth consecutive day in a row. The frontline equity indices though opened in green, but soon slipped into the red. Nifty 50 saw the biggest single-day drop in the last seven months. At one point in time, Nifty 50 had even breached 17,300 level, however, the last hour of buying helped Nifty to recoup some of the days' losses. The main culprit for today’s action was negative news flow for Reliance Industries and FIIs selling on the back of higher valuations.

Activity in the F&O market for the weekly expiry on November 25, 2021, shows 18,000 to continue as a strong resistance. The highest call option open interest (164637) for Nifty 50 stood at a strike price of 18,000. In terms of the highest addition of open interest in the call options front, it was at 17,600 in the last trading session. A total of 90,900 open interest was added at this strike price.The next highest call option open interest stands at 17,800 where total open interest stood at 131,855.

In terms of put activity, the highest put writing was seen at a strike price of 17,000 (26,711 open interest added on November 22), followed by 15,500 (21,217 open interest added on November 22). The highest put open interest unwinding was seen at a strike price of 17,500 (9094 open interest shed on November 22).

Highest total put open interest (80,894) stood at a strike price of 17,000. This is followed by a strike price of 17,400, which saw a total put option open interest of 69,030 contracts.

Following table shows the difference between call and put options at strike price near to max pain of 17600.

Strike Price  

Open Interest (Call option)  

Open Interest (Put option)  

Diff(Put – Call)  

17,300.00  

17363  

55516  

38153  

17,400.00  

41664  

69030  

27366  

17,500.00  

67369  

51620  

-15749  

17600  

95557  

30904  

-64653  

17,700.00  

99714  

30191  

-69523  

17,800.00  

131855  

47473  

-84382  

17,900.00  

92715  

16964  

-75751  

 The Nifty 50 put call ratio (PCR) closed at 0.50 compared to 0.68  in the previous trading session. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.

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