F&O Market Recap for 3 January 2022

Index Action 

Nifty50

Nifty50 welcomed the new year with strong gains and surged over 1.5%. A strong rally was seen across most sectors except pharma. The headline index closed near the day’s high at 17,625, up by 271 points. 

Nifty50’s monthly options expiring on January 27 have sizable positions at 18,000 and 18,500 call options and 17,000 and 17,500 put options. 

Nifty50’s weekly options expiring on January 6 have sizable positions at 18,000 and 17,900 call options and 17,300 and 17,500 put options. 

As per options data, the broad range for Nifty50 is between 16,400 and 18,600 levels. Its immediate support is at 17,300 and resistance is at 17,900 levels.

Bank Nifty

Bank Nifty outperformed the Nifty50 by over 1% as financial stocks witnessed strong buying interest. With a sharp uptick in HDFC and ICICI bank, it closed firmly in the green at 36,421 up by 940 points. 

Bank Nifty’s monthly options expiring on January 27 have sizable positions at 37,000 and 38,000 call options and 35,000 and 36,000 put options. 

Bank Nifty’s weekly options expiring on January 6 have sizable positions at 36,500 and 37,000 call options and 36,000 and 35,500 put options. 

As per the options data, the broad range for Bank Nifty, is between 34,800 and 37,900 levels. Its immediate support is at 35,900 and resistance is at 37,200 levels. 

Stock Action

Today’s top gainers were Coal India, Federal Bank, RBL Bank, AB Capital and Eicher Motors. 

Today's top losers were Laurus Labs, Tata Communications, Rain Industries, Cipla and Cadila Healthcare. 

Sector Update 

Among the sectoral indices, Bank and Metal emerged as the leading sectors. Stocks like Federal Bank, RBL Bank, ICICI Bank, Vedanta and Tata Steel closed in the green. 

The Pharma sector came under selling pressure. Stocks like Laurus Labs, Cipla, Cadila Healthcare and Dr.Reddy’s closed in the red. 

Major News

India’s manufacturing sector activities moderated in December as the Purchase Managers’ Index (PMI) compiled by IHS Markit fell to 55.5 versus 57.6 in November. Though it stayed above 50 which indicates growth for the sixth straight month.