F&O Market Recap for 18 February 2022

Index Action 

Nifty50

The Nifty50 swung between the red and green and slipped below the 17,300 mark. Oil & Gas, Pharma, and Auto stocks dragged the index lower, while Financials provided some support. The Nifty50 ended lower by 28 points at 17,276.

The Nifty50’s monthly options expiring on February 24 have sizable positions at 17,500 and 17,300 call options and 17,300 and 17,200 put options. 

As per options data, the broad range for the Nifty50 is between 16,200 and 18,200 levels. Its immediate support is at 16,900 and resistance is at 17,800 levels.

Bank Nifty

The Bank Nifty ended the volatile session in green and closed above the 37,500 mark. The breadth was in favour of declines, but gains in leading private banks pushed the index higher. The Bank Nifty climbed 67 points to 37,599.

The Bank Nifty’s monthly options expiring on February 24 have sizable positions at 38,000 and 38,500 call options and 37,500 and 37,000 put options. 

As per options data, the broad range for the Bank Nifty, is between 36,300 and 39,900 levels. Its immediate support is at 36,900 and resistance is at 38,500 levels. 

Stock Action

Today’s top gainers were India Cements, Voltas, Coal India, Torrent Pharma and SBI Life. 

Today's top losers were Ambuja Cements, Motherson Sumi, FSL, Piramal Enterprises and Chambal Fertilisers. 

Sector Update 

On the sectoral front, Nifty Bank emerged as the leading sector with buying interest. Stocks like Axis Bank, Kotak Mahindra Bank, SBI and HDFC Bank closed in the green. On the downside, Realty and Oil & Gas sectors came under selling pressure. Stocks like Godrej Properties, DLF, ONGC, Tata Power and Reliance Industries closed in the red.

Coming soon: Options strategy builder

What is a bull call spread?

A bull call spread is a strategy that traders implement when they are “moderately” bullish on a stock or an index. In this strategy, a trader can place two orders, one buy and one sell. The sell order acts as a hedge or a protection to the buy order.  Let's understand this with an example of Nifty50. Assume that Nifty50 is currently at 17400. In this scenario, a trader can initiate a 300 points bull call spread strategy by buying a call option of 17400 strike and simultaneously selling a call option of 17700 strike.

To further enhance your trading experience, Upstox will be soon launching its advanced options strategy builder on its trading platforms for all its customers. With the help of our strategy builder – in 3 clicks, the traders will have better downside protection, automated P&L calculations and a hassle-free approach while placing multi-leg orders. Above all, a straightforward and more disciplined approach to trade-in options. So, sit tight and stay tuned...