F&O Morning Update for 25 January 2022

Global Markets Update

SGX Nifty is trading in the red, down by 61 points. Major Asian markets are trading in the red, both Nikkei and Hang Seng are trading 1.6% lower. 

European markets closed lower in the range of -4% to -2.6%. Following a sharp sell-off, the US markets mounted a dramatic comeback and closed higher. The Dow Jones closed almost 0.3% higher and NASDAQ gained 0.6%. 

Stock Action

Long build-up was seen in ONGC. 

Short build-up was seen in REC, Dixon Technologies, SRF, JK Cement and Bajaj Finance. 

F&O stocks in ban

Stocks in ban: Escorts and NALCO

Stocks added: BHEL, Indiabulls Housing Finance and Vodafone Idea

Stocks out of ban: 

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹3,751 crore while DIIs were net buyers of ₹74 crore. In the derivatives market, FIIs sold index futures worth ₹1,572 crore and bought index options worth ₹6,133 crore. Further, they sold stock futures worth ₹1,093 crore and bought stock options worth ₹807 crore.

Index Action

Nifty50

The Nifty50 tumbled on Monday and slipped below 17,000 as selling pressure raged unabated throughout the day. Metal and IT stocks continued the slide as the Nifty50 dropped 468 points and closed at 17,149. 

India VIX surged 20.85% to 22.82.  

The Nifty50’s monthly options expiring on January 27 have sizable positions at 17,500 and 17,600 call options and 17,000 and 16,500 put options. Further additions were seen at 17,400 call options and 16,800 put options

As per options data, the broad range for Nifty50 is between 16,400 and 17,900 levels. Its immediate support is at 16,900 and resistance is at 17,500 levels.

Bank Nifty 

The Bank Nifty also came under selling pressure but staged a mild recovery towards fag-end. With only 1 out of 12 stocks closing in the green, it plunged 626 points to close at 36,947. 

The Bank Nifty’s monthly options expiring on January 27 have sizable positions at 38,000 and 37,500 call options and 36,000 and 37,000 put options. Further additions were seen at 37,500 call options and 36,200 put options.

As per the options data, the broad range for the Bank Nifty, is between 35,500 and 38,400 levels. Its immediate support is at 36,200 and resistance is at 37,600 levels.