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

Highest put option open interest contract was added at a strike price of 15000 for expiry on March 10.

Post the super volatile yesterday, Nifty 50 pose a good recovery in today’s session. At the start of the session, the market did witness 148.6 points rally from its low in initial trade. Nonetheless, towards the end of the first half, it gave up on the initial gains drowned almost 185 points. However, after making a day’s low at 15,671.45, Nifty 50 started to march upwards and covered its lost grounds to close at 16,013.45.

Having said that, it is trading way below its 200 Day Exponential Moving Average (EMA) of 16696.77 and going forward its 200 Day EMA would act as its resistance. Broader markets on the other hand outperformed Nifty 50. The favourable exit poll results have added optimism to the markets. In fact, most of the global markets too traded optimistically, while the Asian indices seem to be under pressure due to the impact of rising inflation globally amid a ban on importing Russian oil.

However, on the sectoral front, realty, media, IT, PSU bank and pharma were the top gainers, while metal, oil and gas, PSE and commodities were the top losers.

Activity on the F&O front for weekly expiry on March 10 shows 17000 to act as a strong resistance now. Highest open interest contract of 219921 stood at this strike price. The second-highest call option open interest 100085 for Nifty 50 stood at a strike price of 16500. In terms of the highest addition of open interest in the call options front, it was at 17000 in the last trading session. A total of 65350 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 15000, where 41959 open interest was added today, followed by 15500 strike price where (25350) open interest was added. Highest total put open interest (101836) stood at a strike price of 15000. This is followed by a strike price of 15500, which saw a total put option open interest of 70368 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.52 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 on March 10 stands at 16000.

Top five call and put open interest with their strike price