F&O Morning Update for 17 January 2022

Global Markets Update

SGX Nifty is trading in the red, down by 75 points. Major Asian markets are trading mixed; Nikkei is trading 0.9% higher and Hang Seng is down 0.3%.

European markets closed lower in the range of -0.9% to -0.3%. US markets had a mixed closing. Dow Jones closed 0.5% lower and NASDAQ closed 0.5% higher. 

Stock Action

Long build-up was seen in Cummins, IRCTC, Granules, NBCC and Info Edge. 

Short build-up was seen in Alkem Labs, Mindtree, Aurobindo Pharma, Asian Paints and Mphasis. 

F&O stocks in ban

Stocks in ban: Escorts, Indiabulls Housing Finance, SAIL and Vodafone Idea

Stocks added: Escorts

Stocks out of ban: 

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹1,598 crore while DIIs were net buyers of ₹371 crore. In the derivatives market, FIIs sold index futures worth ₹625 crore and bought index options worth ₹5,358 crore. Further, they sold stock futures worth ₹896 crore and sold stock options worth ₹233 crore.

Index Action

Nifty50

The Nifty50 halted the five-day winning streak and ended a choppy session on a flat note. On Friday, uptrend in Metal and IT stocks countered the down trend of FMCG stocks as the Nifty50 ended day 2 points lower at 18,255. 

India VIX slipped to 16.55. 

The Nifty50’s monthly options expiring on January 27 have sizable positions at 18,500 and 19,000 call options and 17,500 and 18,000 put options. 

The Nifty50’s weekly options expiring on January 20 have sizable positions at 18,200 and 18,300 call options and 18,200 and 18,000 put options. Further additions were seen at both 18,200 call and put options.

As per options data, the broad range for the Nifty50 is between 17,200 and 18,900 levels. Its immediate support is at 17,700 and resistance is at 18,500 levels.

Bank Nifty 

The Bank Nifty bounced from the lows of 38,007 and ended the day lower. Last week it gained 1.7%, following its best week since May 2021. On Friday, it closed 99 points lower at 38,370. 

The Bank Nifty’s monthly options expiring on January 27 have sizable positions at 39,000 and 38,500 call options and 38,000 and 37,000 put options. 

The Bank Nifty’s weekly options expiring on January 20 have sizable positions at 38,500 and 39,000 call options and 38,000 and 37,500 put options. Further additions were seen at both 38,000 call and put options.

As per the options data, the broad range for the Bank Nifty, is between 36,800 and 39,600 levels. Its immediate support is at 38,000 and resistance is at 39,200 levels.