The put-call ratio of open interest remained flat throughout the week, closing at 1.30. The highest concentration of open interest shifted from the 5,300-strike put option to the 5,800-strike call option, which has 80 lakh shares. The strike added 14.5 lakh shares on Friday alone. This is followed by the 5,700 and 5,600 call-option strikes, with open interest of above 65 lakh and 49 lakh shares, respectively. Among put options, the highest open interest is at the 5,500 strike, with an open interest of above 75 lakh shares. This is followed by the 5,400-strike and 5,600-strike put options, with aggregate open interest of 69 lakh and 63 lakh shares, respectively. The options build-up in the 5,800 strike indicates a stiff resistance in the medium term. The implied volatility (IV) of call options was 16.48% on Friday, while average IV of put options was 17.99%.
NOTE: PCR indicates the Nifty's future movements generally. As of now, PCR and OI data indicates that major support is around 5600 (maximum at 5500) whereas major resistance is around 5700 (maximum at 5800). My guess is if Nifty may halt its downside move at/around 5577, next week we may see 5700 and/or 5800.
