F&O Market Recap for 28 January 2022

Index Action 

Nifty50

After a gap-up opening, the Nifty50 fell 270 points from the day's high and wiped out early gains due to a sharp sell-off in the last hour of trading. Losses in Banking and Auto stocks pulled the index lower. It ended the day marginally lower at 17,101, down by 8 points.

The Nifty50’s monthly options expiring on February 24 are scattered and have sizable positions at 18,000 and 18,500 call options and 16,500 and 17,000 put options. 

The Nifty50’s weekly options expiring on February 3 have sizable positions at 17,500 and 17,300 call options and 17,500 and 17,000 put options. 

As per the options data, the broad range for the Nifty50 is between 16,400 and 18,000 levels. Its immediate support is at 16,800 and resistance is at 17,500 levels.

Bank Nifty

The Bank Nifty reacted sharply to the news of the bad bank receiving all necessary approvals and fell below 37,600 levels. It dropped 292 points to close at 37,689. The overall breadth of the banking stocks turned negative as 8 out of the 12 stocks closed in the red.

The Bank Nifty’s monthly options expiring on February 24 are scattered and have sizable positions at 39,000 and 39,500 call options and 36,000 and 37,000 put options. 

The Bank Nifty’s weekly options expiring on February 3 have sizable positions at 39,000 and 38,000 call options and 37,000 and 36,000 put options. 

As per the options data, the broad range for the Bank Nifty, is between 36,300 and 39,800 levels. Its immediate support is at 37,100 and resistance is at 38,400 levels. 

Stock Action

Today’s top gainers were LIC Housing Finance, Laurus Labs, CanFin Homes, Bata and Persistent. 

Today's top losers were TVS Motor, Chambal Fertiliser, RBL Bank, BHEL and Tech Mahindra. 

Sector Update 

Among the Nifty sectoral indices, IT and Pharma were the top gainers. Stocks like Coforge, Mindtree, Mphasis, Laurus Labs and Strides Pharma closed in the green.

The Banking and Auto sectors came under selling pressure. Stocks like RBL Bank, ICICI Bank, Bandhan Bank, TVS Motor and Maruti Suzuki closed in the red. 

Major News 

SBI Chairman Dinesh Khara said that India's bad bank has received all requisite and regulatory approvals and lenders plan to transfer ₹50,000 crore of bad assets out of an estimated ₹2 lakh crores of bad assets to the proposed bad bank in this fiscal.