F&O Morning Update for 27 October 2021

Global Markets Update

SGX Nifty is trading down by 27 points. Major Asian markets are trading in the red with Nikkei trading down by nearly 0.6% and Hang Seng trading down by 1.4%. 

European markets closed higher in the range of 0.75% to 1%. US markets saw flat closing with the Dow Jones closing at 0.04% higher at new all time high. NASDAQ closed 0.06% higher.

Stock Action

Long Build-up was seen in stocks like PNB, Kotak Mahindra Bank, RBL Bank, Bajaj Finance and Max Financial. 

Short Build-up was seen in stocks like Bandhan Bank, Ipca Labs, Indiamart, Canara Bank and Indusind Bank. 

F&O Stocks in Ban

Stocks in Ban:  Canara Bank, Indiabulls Housing, IEX, NMDC, SAIL and Sun TV

Stocks added:  Canara Bank

Stocks out of ban: Escorts

FII/DII Activity**

In the cash market, FIIs were net sellers for ₹2,368 crore while DIIs were net buyers for ₹1,385 crore. In the Derivatives market, FIIs sold index futures worth ₹340 crore while they bought Index options worth ₹205 crore. For stocks, they sold stock futures worth ₹150 crore and sold stock options worth ₹223 crore.

Index Action

Nifty50

Yesterday, Nifty50 witnessed a volatile session and closed near day’s high. It closed 143 points higher at 18,268.  

India VIX slipped but continues to remain high at 16.75.

Nifty October monthly series options have sizable positions at 18,300 and 18,500 call options and 18,200 and 18,000 put options. Further additions were seen at 18,500 call options and 18,200 put options. 

Options data suggests a broad range for Nifty50 at 17,500 and 18,800 levels and its immediate support is at 18,000 and resistance is at 18,400 levels. 

Bank Nifty 

Bank Nifty took support at 40,800 levels and bounced nearly 500 points to close near day’s high. It closed 45 points higher at 41,238. 

The October monthly series options have significant positions at 41,500 and 42,000 call options and 41,000 and 40,000 put options. Further additions were seen at 41,500 call options and 41,000 put options. 

Options data suggests a range for Bank Nifty as 39,500 and 42,000. It’s Immediate support at 40,500 and resistance at 41,700 levels.

*In Futures and Options or F&O, Long build-up means increase in Open Interest (OI) along with increase in price and Short build-up means increase in Open Interest (OI) along with decrease in price.

 **Source: nseindia.com. Cash market figures are provisional.