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

resr 5paisa Research Team

Last Updated: 3rd November 2021 - 08:46 am

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For trade on November 3, Nifty F&O action shows 17,500 will act as key support while 18,000 will now be a strong resistance.

Nifty after showing a spectacular gain on Monday’s trading session cooled off on Tuesday’s trade. It closed 40 points lower in yesterday’s trade. Nevertheless, the broader market and banking sector outperformed as Nifty Midcap was up by 0.83% while the banking name such as RBL gained in double-digit and overall banking index was up by 0.44%. Nifty 50 opened on a positive note yesterday, however soon it fell in the early part of the trade and continued sideways for the remaining part of the day.

Activity on the F&O market for the weekly expiry on November 3, 2021, shows 18,000 will now act as strong resistance. The highest call option open interest (1,90,549) stood at this strike price. It shed 64552 contracts in yesterday’s trade which shows that call writers are nearly sure that the market will close below this level in today’s trade. The next highest call option open interest stands at 18,200 where total open interest stood at 1,38,200. Almost 40,000 open interest was added at a strike price of 18,200.

In terms of put activity that will give a sense of support, the highest put writing was seen at a strike price of 17500 (74,680 contracts added on November 02), followed by 17,700 (68,987 contracts added on November 01), while there was put unwinding at strike price 16800 (20554 contracts shed), followed by 17,800 (15,821 contracts shed).

Highest total put open interest (74,680) stood at a strike price of 17,500. This is followed by a strike price of 17,700, which saw a total put option open interest of 68,987 contracts.

Following table shows the difference between call and put options at a strike price near to max pain of 17900.
 

Strike Price  

Open Interest (Call option)  

Open Interest (Put option)  

Diff(Put – Call)  

17,600.00  

4321  

59253  

54932  

17,700.00  

17354  

68987  

51633  

17,800.00  

26686  

67956  

41270  

17900  

62572  

48322  

-14250  

18,000.00  

190549  

45156  

-145393  

18,100.00  

105776  

5228  

-100548  

18,200.00  

138200  

6957  

-131243  

The Nifty 50 put call ratio (PCR) closed at 0.55 worse than 0.72 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 02 2021  

Nov 01 2021  

Oct 29 2021  

Client  

-14962  

-4.93%  

-318531  

-303569  

-335526  

Pro  

-4197  

-7.78%  

49755  

53952  

84353  

DII  

2000  

4.88%  

43014  

41014  

37014  

FII  

17159  

8.23%  

225761  

208602  

214159  

*Change from Previous Day  

   

   

   

   

   

   

   

Index Call Options  

Client Type  

Change of OI*  

% Change of OI*  

Nov 02 2021  

Nov 01 2021  

Oct 29 2021  

Client  

140467  

1666.28%  

148897  

8430  

157890  

Pro  

-114613  

-141.39%  

-195673  

-81060  

-188121  

DII  

0  

0.00%  

401  

401  

401  

FII  

-25853  

-35.79%  

46376  

72229  

29830  

*Change from Previous Day  

   

   

   

   

   

      

Net Change in Open Interest  

Client Type  

Change of OI*  

% Change of OI*  

Nov 02 2021  

Nov 01 2021  

Oct 29 2021  

Client  

155429  

49.82%  

467428  

311999  

493416  

Pro  

-110416  

-81.78%  

-245428  

-135012  

-272474  

DII  

-2000  

-4.92%  

-42613  

-40613  

-36613  

FII  

-43012  

-31.54%  

-179385  

-136373  

-184329  

*Change from Previous Day  

   

   

   

   

   

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