F&O Morning Update for 20 January 2022

Global Markets Update

SGX Nifty is trading lower by 95 points, signalling a muted start on the D-street. Major Asian markets are trading mixed; Nikkei is trading 0.1% lower and Hang Seng is up 0.4%. 

The European markets closed higher in the range of 0.2% to 0.5%. The US markets fell heavily for the second consecutive day. The Nasdaq dipped 1.15% and the Dow Jones closed 0.9% lower.

Stock Action

Long build-up was seen in ONGC, IDFC, Trent, Gujarat Gas and GAIL. 

Short build-up was seen in Bajaj Finance, Cummins, IGL, Metropolis and Apollo Hospitals.

F&O stocks in ban

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

Stocks added: -

Stocks out of ban: -

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹2,704 crore while DIIs were net sellers of ₹195 crore. In the derivatives market, FIIs sold index futures worth ₹1,261 crore and bought index options worth ₹11,803 crore. Further, they bought stock futures worth ₹940 crore and sold stock options worth ₹435 crore.

Index Action

Nifty50

The Nifty50 extended losses for the second consecutive day amid rising bond yields, jump in crude prices and weak global cues. It plunged 174 points to close at 17,938.

India VIX climbed to 17.81.  

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 18,100 call options and 17,900 and 17,800 put options. Further additions were seen at 18,000 call options and 17,900 put options.

As per options data, the broad range for Nifty50 is between 17,200 and 18,700 levels. Its immediate support is at 17,700 and resistance is at 18,300 levels.

Bank Nifty 

The Bank Nifty slipped below the 38,000 mark but buying interest in PSU banks and a late recovery helped it regain the crucial level. It fell 168 points to close at 38,041. 

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 38,500 and 39,000 call options and 38,000 and 37,500 put options. Further additions were seen at 38,000 call options and 37,900 put options.

As per the options data, the broad range for Bank Nifty, is between 37,000 and 39,300 levels. Its immediate support is at 37,600 and resistance is at 38,800 levels.