F&O Cues: Key support and resistance levels for Nifty 50
5paisa Research Team
Last Updated: 2nd November 2021 - 08:44 am
For trade on November 2, Nifty F&O action shows 17,800 will act as key support while 18,000 will be strong resistance.
Nifty finally managed to break its three days of losing streak on November 1, trade. Nifty 50 opened on a positive note and after a few bouts of volatility in the initial trade, gained for the entire day. It gained as much as 1.46% in yesterday’s trade (November 1). There were some positive macro-economic numbers such as GST collection and better IHS Markit India Manufacturing Purchasing Managers’ Index for October that helped the market to gain.
Activity on the F&O market for the weekly expiry on November 3, 2021, shows 18,000 will act as first-line resistance now. The highest call option open interest stood at this strike price. Nevertheless, it shed 17608 contracts in yesterday’s trade which shows that call writers are not sure about defending 18,000. The next highest call option open interest stands at 19,000 where total open interest stood at 1,10,316. In terms of the highest addition of call open interest on Monday’s trading session, 20,500 was added at the strike price of 18,300.
In terms of put activity that will give a sense of support, the highest put writing was seen at a strike price of 17800 (54,232 contracts added on November 01), followed by 17,700 (41,217 contracts added on November 01), while there was put unwinding at strike price 16600 (3586 contracts shed), followed by 16,400 (2479 contracts shed).
Highest total put open interest (87,662) stood at a strike price of 17,800. This is followed by strike price 17,700, which saw a total put option open interest of 73,262 contracts, while strike price 17,500 has 72885 contracts in open interest.
Following table shows the difference between call and put options at strike price near to max pain of 17900.
|
Strike Price |
Open Interest (Call option) |
Open Interest (Put option) |
Diff(Put – Call) |
|
17,600.00 |
6552 |
60321 |
53769 |
|
17,700.00 |
21025 |
73262 |
52237 |
|
17,800.00 |
48186 |
87662 |
39476 |
|
17900 |
44907 |
41295 |
-3612 |
|
18,000.00 |
126066 |
43403 |
-82663 |
|
18,100.00 |
70010 |
6039 |
-63971 |
|
18,200.00 |
100154 |
8034 |
-92120 |
The Nifty 50 put call ratio (PCR) closed at 0.72 much better than 0.47 in the last trading session. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.
Following table shows the participant wise action of key players on the index options front.
|
|
Index Put Options |
||||
|
Client Type |
Change of OI* |
% Change of OI* |
Nov 01 2021 |
Oct 29 2021 |
Oct 28 2021 |
|
Client |
31957 |
9.52% |
-303569 |
-335526 |
-313500 |
|
Pro |
-30401 |
-36.04% |
53952 |
84353 |
74030 |
|
DII |
4000 |
10.81% |
41014 |
37014 |
36734 |
|
FII |
-5557 |
-2.59% |
208602 |
214159 |
202736 |
|
*Change from Previous Day |
|
|
|
|
|
|
|
Index Call Options |
||||
|
Client Type |
Change of OI* |
% Change of OI* |
Nov 01 2021 |
Oct 29 2021 |
Oct 28 2021 |
|
Client |
-149460 |
-94.66% |
8430 |
157890 |
109984 |
|
Pro |
107061 |
56.91% |
-81060 |
-188121 |
-140290 |
|
DII |
0 |
0.00% |
401 |
401 |
401 |
|
FII |
42399 |
142.14% |
72229 |
29830 |
29905 |
|
*Change from Previous Day |
|
|
|
|
|
|
|
Net Change in Open Interest |
||||
|
Client Type |
Change of OI* |
% Change of OI* |
Nov 01 2021 |
Oct 29 2021 |
Oct 28 2021 |
|
Client |
-181417 |
-36.77% |
311999 |
493416 |
423484 |
|
Pro |
137462 |
50.45% |
-135012 |
-272474 |
-214320 |
|
DII |
-4000 |
-10.93% |
-40613 |
-36613 |
-36333 |
|
FII |
47956 |
26.02% |
-136373 |
-184329 |
-172831 |
|
*Change from Previous Day |
|
|
|
|
|
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