F&O Market Recap for 2 March 2022

Index Action 

Nifty50

The Nifty50 had a weak day and slipped below the 16,500 mark. Losses in Auto and Banking stocks pulled the index lower, while Metal and Insurance stocks helped to trim losses. Besides, oil prices hit a multi-year high of $113 per barrel, and weak global cues also dented the market sentiment. The Nifty50 ended the day 187 points lower at 16,605. 

The Nifty50’s monthly options expiring on March 31 are scattered and have sizable positions at 18,000 and 17,500 call options and 16,500 and 16,000  put options. 

The Nifty50’s weekly options expiring on March 3 have sizable positions at 16,700 and 16,800 call options and 16,500 and 16,400 put options. 

As per options data, the broad range for the Nifty50 is between 15,500 and 17,600 levels. Its immediate support is at 16,200 and resistance is at 17,000 levels.

Bank Nifty

The Bank Nifty dipped below the 35,000 mark and was amongst the worst-performing sectors of the day. Both public and private sector banks indices closed the day lower, and Bank Nifty fell 832 points to 35,372.

The Bank Nifty’s monthly options expiring on March 31 are scattered and have sizable positions at 38,000 and 37,000 call options and 35,000 and 34,000 put options. 

The Bank Nifty’s weekly options expiring on March 3 have sizable positions at 36,000 and 36,500 call options and 35,000 and 34,000 put options. 

As per options data, the broad range for the Bank Nifty is between 34,200 and 37,500 levels. Its immediate support is at 34,800 and resistance is at 36,200 levels. 

Stock Action

Today’s top gainers were Coal India, MCX India, GNFC, HDFC Life and Tata Steel. 

Today's top losers were Maruti Suzuki, Dr.Reddy's, CG Consumer, Bandhan Bank and Bajaj Auto. 

Sector Update 

Among the sectors, Metal and Media emerged as the leading sector with buying interest today. Stocks like Coal India, Tata Steel, NMDC, Zee Entertainment and Sun TV closed in green.

The Auto and Banking sectors came under selling pressure. Stocks like Maruti Suzuki, Bajaj Auto, Hero MotoCorp, Bandhan Bank and ICICI Bank closed in the red.

Coming soon: Options strategy builder

What is the Iron Condor strategy?

Iron Condor is a strategy for the range-bound and low volatile market. The strategy is very similar to a short straddle, with the only difference being that short straddle is a two-leg strategy, whereas Iron Condor is a four-leg strategy. In this strategy, we sell one call and one put option at the current price. Along with this, we hedge our selling position by buying a far away call option strike and a far away put option strike.

To further enhance your trading experience, Upstox will soon launch its advanced options strategy builder on its trading platforms for all its customers. With the help of our strategy builder, 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...