The Nifty 50's 22,700 strike has emerged as a key area to watch on Tuesday as traders build fresh positions in both call and put options on a session that marks the weekly and monthly derivatives expiry. Call open interest at the strike increased by 1.36 lakh contracts, while put open interest rose by 88,194 contracts. The 23,000 strike, meanwhile, has the highest call open interest in the available option-chain data.
The positioning puts the focus on whether the Nifty can sustain a move above 22,700 and whether the concentration of call open interest at higher strikes could limit further gains. The 22,500 strike is also in focus, with put open interest of 3.11 lakh contracts, the highest among the strikes in the data.
Key Strikes
The Nifty's underlying value stood at 22,685.85 in the October 27 option-chain snapshot, placing the index close to the 22,700 strike.
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At 22,700, call open interest stood at 2.65 lakh contracts after an addition of 1.36 lakh contracts. Put open interest was 2.51 lakh contracts, following an increase of 88,194 contracts.
The simultaneous increase in call and put open interest points to a concentration of positions at the strike. However, open interest data alone does not establish the direction of those positions or confirm whether the level will act as support or resistance.
The 22,600 strike also saw additions in both segments. Call open interest increased by 20,956 contracts to 1.06 lakh contracts, while put open interest rose by 41,932 contracts to 2.63 lakh contracts.
At 22,650, call open interest increased by 57,272 contracts to 97,762 contracts. Put open interest rose by 76,115 contracts to 1.69 lakh contracts.
Call OI
The 23,000 strike recorded the highest call open interest in the snapshot at 3.51 lakh contracts. Call open interest increased by 80,183 contracts at the strike.
Put open interest at 23,000 stood at 40,234 contracts, with an addition of just 10 contracts.
The difference between call and put open interest at this strike makes 23,000 an important level to monitor as the session progresses. Whether it acts as resistance will depend on how positions change and how the index moves towards the strike.
The 22,800 strike also recorded a substantial increase in call open interest. It rose by 70,655 contracts to 2.20 lakh contracts. Put open interest at the strike stood at 92,046 contracts after an addition of 11,900 contracts.
Put Base
The 22,500 strike had put open interest of 3.11 lakh contracts, the highest among the strikes in the snapshot. Put open interest increased by 50,163 contracts at the strike, while call open interest declined by 143 contracts to 72,371 contracts.
The concentration of put open interest at 22,500 makes it a level to watch if the Nifty comes under selling pressure. However, the data does not guarantee that the strike will hold as support.
The Nifty's movement around 22,600–22,700, along with changes in positions at 22,800 and 23,000, will help establish whether the current positioning shifts as the weekly and monthly contracts approach expiry.
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