ICICI Bank, TCS, Grasim: 5 F&O stocks with high PCR for your watchlist

F&O trading strategy: A high OI-based PCR suggests that traders were expecting limited downside at these counters, and were comfortable writing Puts.

As the market nears the July futures & options expiry day (July 25, 2024), here are five stocks showing high PCR (Put Call Ratio) based on the open positions.

A high PCR denotes presence of higher open positions (read OI) in the Put Strikes compared to Calls for the underlying index/ stock. In general, higher positions in Puts suggest that more traders are bearish and vice versa. However, higher OI Puts could also suggest higher Put writing at these counters, which implies a bullish scenario; as traders foresee limited downside at these counters.

In fact, the Nifty has been rising in month of July so far, backed by a high PCR. The PCR for the July series stood around 1.32, simply indicating 132 open positions in Put contracts for every 100 open positions on the Call side.

Nifty

Current Level: 24,625

Support: Rs 2,709; Rs 2,680; Rs 2,664

Resistance: Rs 2,830

Following today's 0.7 per cent drop in the Nifty, the PCR for the month of July series dropped to 1.03. The highest OI in Puts stands at 24,000 Strike followed by 23,500 and 23,000 Puts. Highest OI in Calls is seen at 25,500 followed by 26,000 and 25,000 Strikes.

The options data suggests likely support for the Nifty around 24,350 levels; below which the index may slide towards 24,000-mark. On the upside, the resistance is likely in the 24,950 - 25,000 range.

TCS

Current Price: Rs 4,306

Support: Rs 4,250

Resistance: Rs 4,420

TCS PCR stands at 1.3; with highest OI in Puts seen at Rs 4,000 Strike followed by Rs 4,200 and Rs 4,100. Fresh Put writing was visible at Rs 4,300 and Rs 4,350 Strikes; indicating likely support for the stock around Rs 4,250 levels going ahead. 

On the other hand, Call writing was seen at Rs 4,350 and Rs 4,400 Strikes. Highest OI among Calls stands at Rs 4,600 Strike. Data indicates likely resistance for the stock around Rs 4,420 levels.

Lupin

Current Price: Rs 1,793

Support: Rs 1,750

Resistance: Rs 1,820; Rs 1,850

Lupin PCR stands at 0.95; with highest OI at Rs 1,700 followed by Rs 1,600 and Rs 1,760 Strike Puts. Highest OI in Calls is visible at Rs 1,800, Rs 1,900 and Rs 1,840 Calls. The options data indicates likely resistance for the stock in the range of Rs 1,820 - Rs 1,850; and support around Rs 1,750 levels.

ICICI Bank

Current Price: Rs 1,246

Support: Rs 1,200

Resistance: Rs 1,265

ICICI Bank PCR stands at 0.93; highest OI among Puts stands at Rs 1,200 followed by Rs 1,180 and Rs 1,230 Strikes. On the Calls side, highest OI is seen at Rs 1,250 Strike followed by Rs 1,260 and Rs 1,300. The options data hints that sustained trade above Rs 1,265, can trigger a sharp rally towards Rs 1,300-mark. On the downside, strong support is visible at Rs 1,200.

Grasim

Current Price: Rs 2,753

Support: Rs 2,709; Rs 2,680; Rs 2,664

Resistance: Rs 2,830

Grasim July contracts PCR stands at 0.92. The options data on the NSE shows highest OI in Puts at 2,700 Strike Price followed by 2,800 and 2,600 Strikes. On the other hand, highest OI in Calls is visible at 2,800 and 2,700 Strikes. 

The Strike-to-options premium pricing indicates key support for Grasim around Rs 2,680 levels; break and sustained trade below the same can trigger a sharper fall. On the positive front, the stock will need to break and trade above Rs 2,830 levels for a short-covering rally to emerge.

Asian Paints

Current Price: Rs 2,962

Support: Rs 2,709; Rs 2,680; Rs 2,664

Resistance: Rs 2,830

Asian Paints PCR stands at 0.91; with mammoth OI in Puts visible at Rs 2,900 Strike. The stock is likely to find strong support in the range of Rs 2,910 - Rs 2,880 levels. Sustained trade below Rs 2,880 could be a cause of concern for the stock. 

On the other hand, highest OI in calls is seen at Rs 3,000 Strike followed by Rs 3,100. The options pricing data suggests likely resistance for the stock around Rs 3,030.