F&O Morning Update for 11 October 2022

Asian Markets Update @ 7:30 am 

The SGX Nifty was trading lower by 24 points at 7:30 am, indicating a flat start for the Nifty50 today. Among Asian markets, Japan’s Nikkei 225 fell 2.2%, while Hong Kong's Hang Seng index slipped 1.4%. 

Global Markets Update 

U.S stocks extended the ongoing downtrend on Monday and started the week lower, led by a decline in tech stocks. This comes after the Biden administration announced new restrictions on U.S companies selling advanced semiconductors to China.

The tech-heavy Nasdaq dropped 1% to a two-year low and closed at 10,542. The Dow Jones fell 0.3% to 29,202, while S&P 500 declined 0.7% to 3,612. The European markets closed yesterday's session flat with a negative bias, in the range of 0.0% to 0.4%.

Index Action

Nifty 50 @ 17,241 📉▼ 73 (-0.4%)

The Nifty50 rebounded from 17,050 levels and trimmed most of the opening losses. However, profit booking around the 17,300 mark capped the upside. Except for IT (+1.0%), all other major sectoral indices ended in the red. FMCG (-1.2%) and Media (-1.1%) declined the most.

Nifty50’s options contracts expiring on 27 October are scattered and have sizable positions at 18,000 and 17,500 call options and 16,000 and 17,000 put options. 

Nifty50’s options contracts expiring on 13 October have sizable positions at 17,500 and 17,600 call options and 17,000 and 17,100 put options. 

As per options data and OI analysis, the broad range for the Nifty50 is between 16,500 and 17,800 levels. On the other hand, 17,000 and 17,500 are the critical levels to watch for the current week.

Bank Nifty @  39,093 📉▼ 84 (-0.2%)

After a dismal start, the Bank Nifty recovered nearly 800 points from the day’s low and recouped most of its losses. However, the profit booking around 39,300 levels dragged the index lower, but it managed to close above the 39,000 mark. 

Among Bank Nifty stocks, Axis Bank (+2.8%) and IDFC First Bank (+1.4%) were the prominent gainers, while Bandhan Bank (-2.7%) and Bank of Baroda (-2.2%) were the laggards.

Bank Nifty’s options contracts expiring on 27 October have sizable positions at 41,000 and 40,000 call options and 38,000 and 37,500 put options. 

Bank Nifty’s options contracts expiring on 13 October have sizable positions at 39,500 and 40,000 call options and 38,000 and 38,500 put options. 

As per options data and OI analysis, the broad range for the Bank Nifty is between 37,500 and 40,500 levels. On the other hand 38,300 and 40,000 are the critical levels to watch for the current week.

FII and DII Data**💰

In the cash market, FIIs sold shares worth ₹2,139 crore, while DIIs bought shares worth ₹2,137 crore. In the derivatives market, FIIs sold index futures worth ₹1,315 crore and bought index options worth ₹8,817 crore. Further, they sold stock futures worth ₹2,109 crore and bought stock options worth ₹252 crore.

India VIX 

The India VIX, a gauge of the market's volatility in the near term, climbed 4.3% to 19.62.

Stock Action📊

Long build-up was seen in Wipro, Delta Corp, Rain Industries, HCL Tech and Ambuja Cements. 

Short build-up was seen in Tata Motors, Birlasoft, Indiabulls Housing Finance, Hero MotoCorp and Tata Consumer Products. 

Major results today: Delta Corp.

Under F&O Ban: Indiabulls Housing Finance and India Cements.

*In Futures and Options or F&O, long build-up means an increase in Open Interest (OI) along with an increase in price, and short build-up means an increase in Open Interest (OI) along with a decrease in price.

**Source: nseindia.com. Cash market figures are provisional.