Sensex Expiry: Options market reflects 73,900 level to be crucial

Equity markets opened higher on Friday and continued their gains by noon. The benchmark Nifty 50 was trading 0.33% higher at 12:43 p.m. while the Sensex was trading 0.42% up.The Sensex, which has its expiry on Friday, traded at 73,970 at 12:43 p.m.

Options indicator

Sensex trades comfortably above 21 EMA

On a 15-minute chart, the index continues to trade above its 21-period and 50-period exponential moving average (EMA) indicating a bullish sentiment.

PCR in overbought zone

However, the index reflects a put-call ratio (PCR) of 1.51 which indicates the market is considering it to be slightly in the overbought territory. PCR is the ratio of the number of puts to the number of calls of an asset. It is noteworthy that in extreme upward market movements, the PCR has gone as high as 1.8 or higher, only to revert slightly to the mean.

Index constituents

Among the major contributors among the index constituents, M&M was trading 6.57% higher on Friday while Reliance Industries was trading 0.48% up. Other constituents of the index like ITC and Kotak Bank were trading higher by 0.74% and 1.26%, respectively. HDFC Bank was trading up by 0.22%.