F&O Market Recap for 6 June 2022

Index Action 

Nifty50

The Nifty50 recovered more than 150 points from the day’s low and closed marginally lower in a range-bound session. A turnaround in Oil & Gas and Metal stocks led the rebound in the index while selling in cement and FMCG stocks capped the upside for the day. The Nifty50 ended 15 points lower at 16,569. 

The Nifty50’s options contracts expiring on 30 June are scattered and have sizable positions at 17,000 and 17,500 call options and 16,000 and 15,500 put options. 

The Nifty50’s options contracts expiring on 9 June have sizable positions at 16,800 and 17,000 call options and 16,300 and 16,500 put options. 

As per options data, the broad range for the Nifty50 is between 15,700 and 17,500 levels. Its immediate support is at 16,400 and resistance is at 16,900 levels.

Bank Nifty

The Bank Nifty took support at 35,100 levels and closed marginally higher above 35,300. The recovery was led by private banks even as its breadth was neutral with 6 advances to 6 declines. The Bank Nifty rose 35 points to 35,310.

The Bank Nifty’s options contracts expiring on 30 June are scattered and have sizable positions at 37,000 and 36,000 call options and 35,000 and 34,000 put options. 

The Bank Nifty’s options contracts expiring on 9 June have sizable positions at 36,000 and 36,500 call options and 35,000 and 34,500 put options. 

As per the options data, the broad range for the Bank Nifty is between 34,400 and 36,600 levels. Its immediate support is at 34,900 and resistance is at 36,000 levels. 

Stock Action

Today’s top gainers were Rain Industries (+4.5%), Bajaj Auto (+4.3%), ICICI Prudential (+3.0%), Balrampur Chini (+2.8%) and JSW Steel (+2.7%). 

Today's top losers were Indiabulls Housing Finance (-4.5%), Coforge (-3.9%), IEX (-3.2%), Info Edge (-3.1%) and Berger Paints (-2.9%). 

Sector Update 

Among major sectoral indices, Metal and Oil & Gas were the top gainers. Stocks like JSW Steel, JSPL, Vedanta, Oil India and ONGC closed in the green. 

The Realty and IT sectors were the top losers. Stocks like DLF, Coforge, LTTS and Mphasis closed in the red. 

Big Story

As per report, the Employees’ Provident Fund Organisation is pondering a proposal to hike its equity investment limit to 25% from 15%. The higher exposure to stocks is with the intent of bridging the shortfall in returns with debt securities struggling to help it reach targets.