F&O Morning Update for 19 January 2022

Global Markets Update

SGX Nifty is trading in the green, up by 10 points. Major Asian markets are trading mixed. The Nikkei dropped 1.3%, and the Hang Seng is up 0.2%.

European markets closed lower in the range of -0.9% to -0.6%. US markets fell sharply on Tuesday. The Dow Jones slipped 1.5%, and the  NASDAQ declined 2.6%. 

Stock Action

Long build-up was seen in Axis Bank, Chola Investments and Dr.Reddys. 

Short build-up was seen in Manappuram, Dr.Lal Pathlabs, Apollo Hospitals, Ambuja Cements and Metropolis. 

F&O stocks in ban

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

Stocks added: BHEL

Stocks out of ban: 

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹1,254 crore while DIIs were net sellers of ₹220 crore. In the derivatives market, FIIs sold index futures worth ₹205 crore and sold index options worth ₹6,132 crore. Further, they sold stock futures worth ₹566 crore and bought stock options worth ₹139 crore.

Index Action

Nifty50

The market opened on a positive note but wiped out initial gains from rising crude prices and the spike in US bond yields. In a sharp sell-off towards the final hour, all major sectoral indices slipped into the red. The Nifty50 fell 195 points to close at 18,113. 

India VIX climbed 6% to 17.78.  

The Nifty50’s monthly options expiring on January 27 have sizable positions at 18,300 and 18,500 call options and 18,000 and 17,500 put options. 

The Nifty50’s weekly options expiring on January 20 have sizable positions at 18,300 and 18,400 call options and 18,000 and 17,800 put options. Further additions were seen at 18,300 call options and 17,800 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 17,800 and resistance is at 18,400 levels.

Bank Nifty 

The Bank Nifty crossed 38,800 mark before the sharp sell-off dragged it more than 750 points. It ended the day 5 points lower at 38,210.

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

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

As per the options data, the broad range for Bank Nifty, is between 36,800 and 39,600 levels. Its immediate support is at 37,700 and resistance is at 38,900 levels.