F&O Morning Update for 22 April 2022

Global Markets Update

The SGX Nifty is trading lower, down by 196 points. Major Asian markets also started Friday's session on a negative note. Japan's Nikkei is down 1.9%(7 am), and Hong Kong's Hang Seng index declined 2.2%(7 am).

The U.S. markets closed lower in a sharp reversal as Fed Chairman signaled that a 50 basis point hike in interest rates will be on the table in May to tame the inflation. The Dow Jones dropped 1%, and the Nasdaq slid 2%. The European markets closed flat to positive in the range of -0.02% to +1.3%.

Stock Action

Long build-up was seen in L&T Finance, RBL Bank, Coal India, Polycab and Maruti Suzuki. 

Short build-up was seen in LTI, Cummins India, Nestle, Jindal Steel and Power and Glenmark Pharma. 

F&O stocks in ban

Stocks in ban: 

Stocks added: 

Stocks out of ban: Tata Power

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹713 crore, while DIIs were net buyers of ₹2,823 crore. In the derivatives market, FIIs bought index futures worth ₹59 crore and bought index options worth ₹6,097 crore. Further, they bought stock futures worth ₹1,385 crore and sold stock options worth ₹108 crore.

Index Action

Nifty50

The Nifty50 continued its upward momentum for the second straight session and progressed towards the 17,400 mark. Led by auto, banking and tech stocks, the index closed near day's high. With 42 stocks closing higher, the Nifty50 surged 256 points to 17,392.

The India VIX dropped 4.3% to 17.85.

The Nifty50’s monthly options expiring on April 28 have sizable positions at 17,500 and 18,000 call options and 17,000 and 17,300 put options. 

As per options data, the broad range for the Nifty50 is between 16,300 and 18,200 levels. Its immediate support is at 17,000 and resistance is at 17,700 levels.

Bank Nifty 

After a gap-up opening, the Bank Nifty posted robust gains and closed the day in green. Gains in HDFC Bank and Kotak Mahindra pushed the index higher, and it shot up 500 points to the 36,900 mark. The Bank Nifty ended the day 1.3% higher to 36,816.

The Bank Nifty’s monthly options expiring on April 28 have sizable positions at 37,000 and 38,000 call options and 36,000 and 35,000 put options. 

As per the options data, the broad range for Bank Nifty is between 35,200 and 38,000 levels. Its immediate support is at 36,100 and resistance is at 37,400 levels.