F&O view: Brisk Put writing at 8,200, 8,300 to act as strong base for Nifty50

NEW DELHI: Fresh Put writing at 7,500, 8,300 levels on the first day of July F&O series points to two things – the base of the market is getting stronger and domestic traders or FIIs might be buying protection to safeguard long positions.

In Put options, strike prices 8,200 and 8,300 saw addition of fresh positions. In the current series, maximum open interest is placed in the Call option of strike price 8,500 and Put option of strike price 8,000.

Fresh Put writing was seen at strike price 8,200 (10.4 lakh contracts added), followed by strike prices 8,300 (9.11 lakh contracts added), 8,100 (2.6 lakh contracts added) and 8,000 (4.01 lakh contracts added).

The maximum Put open interest of 42.14 lakh contracts now stands at strike price 8,000, down from strike price 8,300 before the June expiry. Strike price 8,000 will act as a strong base for the market, followed by strike price 8,100, which has seen accumulation of 27.86 lakh contracts, while strike price 8,200 has 32.23 lakh contracts in open interest.

In Call options, good OI addition was seen at strike prices 8,500 and 8,600, followed by some buildup at strike prices 8,500 and 8,700.

Some Call writing was seen at strike prices 8,500 (5.10 lakh contracts added) and 8,700 (3.4 lakh contracts added) while unwinding was seen at strike prices 8,100 (1.04 lakh contracts shed), 8,200 (1.03 lakh contracts shed) and 8,400 (1.57 lakh contracts shed).

The Nifty Put-Call Ratio (PCR) finally stood at 1.04 for July contracts. If the ratio is more than 1, it means more Puts were traded during the day/month, and if it is less than 1, it means more Calls traded during the day. It is used to gauge market sentiment.



Despite the upward move in Nifty50 on Friday, foreign institutional investors (FIIs) were marginal sellers in the cash market.

In index futures, FIIs were net buyers of positions worth Rs 254 crore with a rise in open interest, indicating the formation of long positions in the previous trading session. On index options, FIIs bought positions worth Rs 901 crore with a significant rise in open interest.

“Since FIIs are continuously buying positions in index futures, we expect Nifty to continue its upward momentum in the coming sessions too,” Angel Broking said in a note. “Traders are advised to trade with a positive bias,” it said.