ITC, NTPC, LIC Housing among 10 F&O stocks to watch ahead of June expiry

The Nifty PCR data suggests that the index may attempt a rally towards 23,700 level ahead of the June series expiry; On the downside, strong support is expected around 23,350 - 23,290.

With just three trading sessions to go for the June futures & options (F&O) expiry, stocks and index futures trading in F&O segment are likely to be in focus in the near-term given the expiry related obligations for squaring-off the positions or rolling-over to the next month series.

As such, the open positions (read open interest) and the corresponding options data plays a key role in determining the underlying stock and index trend in the near-term. The options data helps in understanding the traders sentiment, by way of open positions in Put and Call contracts - in terms of PCR (Put Call Ratioi).

A PCR in excess of 1 means presence of higher open positions in Puts as against Calls. Whereas, in case, the PCR is below 1, it shows higher open interest (OI) in Calls versus Bears.

Despite higher OI in Puts, it does not mean a bearish outlook for the market. On the contrary, higher open positions in Puts suggest presence of likely support for the underlying index/ stock contract with strong hands (Put writers) at play.

The NSE Nifty June futures contract has a PCR of 1.03; with highest OI in Puts seen at 23,000 Strike Price followed by 22,500. Further, aggressive Put writing was seen at 23,400, 23,350 and 23,300 Strikes on Monday, indicating likely support for the Nifty 50 index around 23,350 - 23,290 zone.

On the other end, highest OI among Calls is seen at 24,000 Strike followed by 24,500 and 25,000. Further, 23,600 Call saw some unwinding of positions, with fresh buildup at 23,700 Call. Thus suggesting, a likely up move on the Nifty 50 towards 23,700 levels ahead of the June series expiry.

Similarly, here are 10 stocks with high PCR (in excess of 1) and low PCR (below 0.28) that are likely to see significant action in the next few sessions.

5 stocks with high PCR above 1

Shriram Finance (Rs 2,882): On the downside, Shriram Finance is likely to find considerable support around Rs 2,700 levels. On the upside, break and sustained trade above Rs 2,920, can trigger an up move towards Rs 3,000-mark.

LIC Housing Finance (Rs 734): The options data indicates likely support for the stock at Rs 920 levels; on the upside, the stock can potentially rally to Rs 760.

Jubilant Food works (Rs 570): The highest OI in Puts for the stock is seen at Rs 550 Strike Price, indicating support at that level. On the upside, Rs 575 - Rs 585 seems a crucial resistance zone, above which short-covering can be expected.

Samvardhana Motherson International (Rs 188): Presence of high OI at Rs 180 and Rs 185 Strike Price indicate likely support at these levels. On the upside, key resistance is seen at Rs 192.50.

Page Industries (Rs 40,300): The options data suggests presence of support at Rs 39,800. On the upside, break and sustained trade above Rs 40,400 can potentially trigger a rally towards Rs 42,000-mark.

5 stocks with low PCR below 0.28

ITC (Rs 423): Options data shows presence of significant resistance at Rs 440 and Rs 450, basis on the OI in Calls. Near resistance is seen at Rs 427 and Rs 430. On the downside, support at Rs 418.50 holds the key. Break and sustained trade below the same, can trigger a slide to Rs 410.

NTPC (Rs 363): Resistance for NTPC stock is seen at Rs 370 and Rs 380 followed by heavy call writing at Rs 400 Strike Price. On the downside, options premium data suggests likely support at Rs 357 and Rs 350 levels.

Maruti Suzuki (Rs 12,183): The stock has significant call writing across Strike Prices from Rs 12,500 - Rs 13,000; indicating a likely capped up side. Near resistance is expected around Rs 12,300 levels. On the downside, support is seen around Rs 11,950 - Rs 11,800 levels; below which a fall to Rs 11,500 seems possible.

ONGC (Rs 270): Near resistance for ONGC is seen around Rs 272. Break and sustained trade above the same can potentially trigger an up move towards Rs 280; which is likely to act as a stiff barrier for the June series. In case of a dip, the stock may seek support around Rs 265.

Sun Pharma (Rs 1,495): The stock is trading close to its anticipated resistance based on the options data at Rs 1,500 - Rs 1,510 range. Break and sustained trade above Rs 1,510 barrier can trigger a short-covering rally towards Rs 1,540 levels. On the downside, support for the stock is seen around Rs 1,482 levels and Rs 1,460.