F&O Market Recap for 27 January 2022

Index Action 

Nifty50

The Nifty50 sharply pared its losses but remained negative amid rising crude prices and geopolitical tensions. The fag-end recovery in the Nifty50 was driven by a rebound in banking stocks. It dropped 167 points and settled at 17,110.

The Nifty50’s monthly options expiring on February 24 are scattered and have sizable positions at 18,000 and 18,500 call options and 16,500 and 17,000 put options. 

The Nifty50’s weekly options expiring on February 3 have sizable positions at 18,000 and 17,000 call options and 17,000 and 16,500 put options. 

As per the options data, the broad range for the Nifty50 is between 16,400 and 18,000 levels. Its immediate support is at 16,800 and resistance is at 17,500 levels.

Bank Nifty

The Bank Nifty ended a volatile session on a positive note. It reclaimed the 38,000 mark with 9 out of the 12 stocks closing in the green. It surged 275 points to close at 37,982.

The Bank Nifty’s monthly options expiring on February 24 are scattered and have sizable positions at 39,000 and 40,000 call options and 36,000 and 37,000 put options. 

The Bank Nifty’s weekly options expiring on February 3 have sizable positions at 38,000 and 39,000 call options and 37,000 and 37,500 put options. 

As per the options data, the broad range for the Bank Nifty, is between 36,300 and 39,800 levels. Its immediate support is at 37,300 and resistance is at 38,700 levels. 

Stock Action

Today’s top gainers were Canara Bank, Shriram Transport Finance, RBL Bank, Bank of Baroda and Federal Bank. 

Today's top losers were Torrent Pharma, Indiamart, Coforge, Dalmia Bharat and Mindtree.

Sector Update 

Among the Nifty sectoral indices, the Banking and Auto sectors were the top gainers. Stocks like RBL Bank, Axis Bank, PNB, Maruti Suzuki and TVS Motor closed in the green.

The IT and Pharma sectors came under selling pressure. Stocks like Mphasis, Mindtree, Coforge, Torrent Pharma and Biocon closed in the red. 

Major News 

The U.S. Federal Reserve signalled interest rate hike starting in March and sustained policy tightening to control rising inflation. Following the Federal meeting, Chairman Jerome Powell also reaffirmed plans to end its bond purchases from March.