F&O Morning Update for 25 October 2022

Asian Markets Update @ 7:30 am 

The SGX Nifty was trading lower by 21 points at 7:30 am, indicating a flat to negative start for the Nifty50 today. Major Asian markets were trading mixed. The Nikkei 225 in Japan advanced 0.9%, while Hong Kong’s Hang Seng index lost 0.2%.

Global Markets Update 

US markets extended their gains and closed Monday’s session higher. The Dow Jones rose 1.3% to 31,499, while S&P 500 climbed 1.1% and closed at 3,797. The technology-heavy Nasdaq composite advanced 0.8% and ended the day at 10,952. The European markets closed higher, in the range of 0.6% to 1.5%.

Index Action

Nifty50 @ 17,730 📈▲ 154 (+0.8%)

The Nifty50 kicked off Samvat 2079 on a strong note and surged nearly one percent during the special one-hour Muhurat trading session yesterday. Except for FMCG, all the major sectoral indices ended in the green, with Nifty Bank (+1.2%) and Auto (+0.7%) being the top gainers.

Nifty50’s options contracts expiring on 27 October have sizable positions at 18,000 and 17,800 call options and 17,500 and 17,600 put options. 

As per options data and OI analysis, the broad range for the Nifty50 is between 16,800 and 18,400 levels. On the other hand, 17,600 and 18,000 are the critical levels to watch for the current week.

Bank Nifty @ 41,304 📈▲ 520 (+1.2%)

The Bank Nifty also started the Muhurat session on a bullish note and closed above the 41,000 mark after a month. This comes after strong earnings posted by some of the banking majors. The banking index now stands 1.3% below its recent all-time high. 

Among stocks, ICICI Bank (+2.1%) and IDFC First Bank(+1.9%) were the top gainers, while Bandhan Bank (-0.9%) and Kotak Mahindra Bank (-0.3%) were the only losers.

Bank Nifty’s options contracts expiring on 27 October have sizable positions at 42,000 and 41,500 call options and 40,000 and 40,500 put options. 

As per options data and OI analysis, the broad range for the Bank Nifty is between 40,400 and 42,000 levels. On the other hand 40,800 and 41,600 are the critical levels to watch for the current week.

FII and DII Data**💰

In the cash market, FIIs sold shares worth ₹153 crore, while DIIs bought shares worth ₹80 crore. In the derivatives market, FIIs bought index futures worth ₹1,709 crore and sold index options worth ₹4,379 crore. Further, they bought stock futures worth ₹157 crore and bought stock options worth ₹119 crore.

India VIX 

The India VIX, which measures the implied volatility of Nifty50 options advanced 0.8% to 17.42.

Stock Action📊

Long build-up was seen in Delta Corp, MCX, AB Capital, Nestle India and SBI. 

Short build-up was seen in SBI Cards, Bandhan Bank, Indiabulls Housing Finance, RBL Bank and Atul Ltd.

*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.