F&O Morning Update for 4 March 2022

Global Markets Update

SGX Nifty slipped 365 points in Friday morning trade as investors remain on edge over Russia's invasion of Ukraine. Major Asian markets are also trading lower. Japan's Nikkei dropped 2.5%(7 am), and Hong Kong's Hang Seng index shed 2.5%(7 am).

European markets closed lower in the range of -2.5% to -1.8%. The U.S. markets were volatile and closed lower on Thursday. Every major index closed negative. The Dow Jones slipped 0.2%, and NASDAQ dropped 1.5%.

Stock Action

Long build-up was seen in ONGC, Power Grid, Vedanta, Persistent and Muthoot Finance. 

Short build-up was seen in Ultratech Cement, Gujarat Gas, Escorts, Shree Cement and Ambuja Cement.

F&O stocks in ban

Stocks in ban: 

Stocks added: 

Stocks out of ban: 

 FII/DII Activity**

In the cash market, FIIs were net sellers of ₹6,644 crore, while DIIs were net buyers of ₹4,799 crore. In the derivatives market, FIIs sold index futures worth ₹711 crore and bought index options worth ₹10,776 crore. Further, they sold stock futures worth ₹410 crore and sold stock options worth ₹61 crore.

Index Action

Nifty50

The Nifty50 erased all its opening gains and closed below 16,500. Oil & Gas, IT, and Metals stocks traded higher, while Auto and Banking stocks dragged the index lower. The Nifty50 closed 107 points lower at 16,498.

The India VIX dropped 3.6% to 28.15.   

The Nifty50’s monthly options expiring on March 31 are scattered and have sizable positions at 18,000 and 17,500 call options and 16,500 and 16,000  put options. 

The Nifty50’s weekly options expiring on March 10 have sizable positions at 17,000 and 16,700 call options and 16,000 and 16,500 put options. 

As per options data, the broad range for the Nifty50 is between 15,500 and 17,600 levels. Its immediate support is at 16,100 and resistance is at 17,000 levels.

Bank Nifty 

The Bank Nifty fell more than 1,000 points from its intraday high and was among the worst-performing sectors yesterday. It dropped 428 points to 34,944. Both PSU and private banks slipped in trade, with the latter taking a bigger hit.

The Bank Nifty’s monthly options expiring on March 31 are scattered and have sizable positions at 38,000 and 37,000 call options and 35,000 and 34,000 put options. 

The Bank Nifty’s weekly options expiring on March 10 have sizable positions at 35,000 and 36,000 call options and 35,000 and 34,000 put options. 

As per options data, the broad range for the Bank Nifty is between 33,600 and 37,300 levels. Its immediate support is at 34,300 and resistance is at 35,800 levels.