Open interest (OI) in the present month (March series) Nifty call options is 3.37 crore, while OI in put option is 4.87 crore. The PCR (Put Call ratio) comes out to be 1.45. OI in the near month (April series) Nifty call option is 1.24 crore and OI in put option is 1.39 crore for a PCR of 1.12. The data suggest that there is still some momentum left in the rally.
Analysis of 6,600 and 6,500 strike options of Nifty indicates a close between 6,500 - 6,600 on expiry day due on Thursday. For the March series, 6,600 call option OI is 61.17 lakh, while OI in put option is 47.80 lakh. The PCR is 0.78. Nifty 6,500 call option OI is 34.91 lakh and put option OI is 60.17 lakh, so PCR stands out to be 1.72.
Higher PCR for 6,500 strike means big traders are confident of Nifty staying above 6,500 on expiry. As a result, they are selling more puts of 6,500 strike.
The above data suggests higher amount of puts are written at 6,500 strike and less puts are written at 6,600 strike for March expiry.Most likely expiry may happen between 6,500 - 6,600.