F&O Morning Update for 17 October 2022

Asian Markets Update @ 7:30 am 

SGX Nifty was trading lower by 147 points at 7:30 am, indicating a gap-down start for the Nifty50 today. Major Asian markets were also trading lower. In Japan, the Nikkei 225 declined 1.5%, while Hong Kong's Hang Seng index slipped 1.0%.

Global Markets Update 

U.S. stocks declined on Friday after a strong turnaround a day before. All the three major indices erased earlier gains after a consumer survey from the University of Michigan showed inflation expectations increasing.

The Dow Jones fell 1.3% to 29,634, while S&P 500 tumbled 2.3% to 3,583. The tech-heavy Nasdaq slipped 3% and ended the day at 10,321. Meanwhile, the European markets closed Friday’s session higher in the range of 0.1% to 0.6%.

Index Action

Nifty50 @ 17,185 📈▲ 171 (+1.0%)

The Nifty50 finished Friday's session higher, led by a short-covering rally in international indices and strong gains in IT major Infosys and HDFC twins. However, the index trimmed most of its intraday gains towards the end. Among major sectoral indices, Financial Services (+1.8%) and Nifty Bank (+1.7%) were the top gainers, while Oil & Gas (-1.0%) and Realty (-0.8%) were the top losers.  

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 20 October have sizable positions at 17,500 and 17,300 call options and 17,000 and 16,500 put options. 

As per options data and OI analysis, the broad range for the Nifty50 is between 16,400 and 17,800 levels. On the other hand, 17,000 and 17,400 are the critical levels to watch for the current week.

Bank Nifty @ 39,305 📈▲ 681 (+1.7%)

After a strong opening, the Bank Nifty remained in a range and ended Friday's session above the 39,300 mark. Among stocks, Federal Bank (+4.3%) and AU Small Finance Bank (+3.4%) advanced the most, while IDFC First Bank (-0.2%) and IndusInd Bank (-0.2%) remained under pressure.

Bank Nifty’s options contracts expiring on 27 October have sizable positions at 41,000 and 39,000 call options and 38,000 and 39,000 put options. 

Bank Nifty’s options contracts expiring on 20 October have sizable positions at 39,500 and 40,500 call options and 39,000 and 37,500 put options. 

As per options data and OI analysis, the broad range for the Bank Nifty is between 38,100 and 40,500 levels. On the other hand 38,600 and 39,700 are the critical levels to watch for the current week.

FII and DII Data**💰

In the cash market, FIIs sold shares worth ₹1,011 crore, while DIIs bought shares worth ₹1,624 crore. In the derivatives market, FIIs bought index futures worth ₹2,022 crore and bought index options worth ₹2,596 crore. Further, they bought stock futures worth ₹2,216 crore and sold stock options worth ₹99 crore.

India VIX 

The India VIX, a gauge of the market's volatility in the near term, slipped 10% to 18.26.

Stock Action📊

Long build-up was seen in Coforge, Mahanagar Gas, Federal Bank, Chambal Fertilisers and Larsen & Toubro Infotech.

Short build-up was seen in Max Financial Services, JK Cement, Escorts Kubota, Indian Hotels and Bajaj Auto. 

Key results today: ACC, Can Fin Homes and PVR.

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

*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.