F&O Morning Update for 1 August 2022

Asian Markets Update @7 am 

SGX Nifty is trading higher by 42 points, signalling a positive start for the Nifty50 today. Major Asian markets are trading mixed. In Japan, the Nikkei gained 0.2%, while Hong Kong’s Hang Seng index slipped 0.8%.

Global Markets Update 

The US markets closed higher on Friday, led by a rally in tech stocks. The Dow Jones rose 0.9%, while the Nasdaq climbed 1.8%. The European markets closed higher in the range of +1% to +1.7%.

Stock Action

Long build-up was seen in Cipla, Max Financial Services, Bata India, Ashok Leyland and Bosch. 

Short build-up was seen in Dr. Reddy’s, Intellect Design, Jubilant FoodWorks, M&M Financial and Punjab National Bank. 

FII/DII Activity**

In the cash market, FIIs were net buyers of ₹1,046 crore, while DIIs were net sellers of ₹0.9 crore. In the derivatives market, FIIs bought index futures worth ₹805 crore and bought index options worth ₹2,021 crore. Further, they bought stock futures worth ₹182 crore and sold stock options worth ₹177 crore.

India VIX 

The India VIX, a gauge of the market's volatility in the near term, slipped 2.7% to 16.55. 

Index Action

Nifty50

Following strong global cues, Nifty50 climbed the 17,000 mark and ended higher for the third straight day. It surged 228 points and closed Friday's session at 17,158. Barring PSU Bank, all the major sectoral indices closed in the green, with Metal (+3.7%), Oil & Gas (+2.1%), and IT(+1.7%) being the top gainers.

The Nifty50’s options contracts expiring on 25 August have sizable positions at 17,000 and 18,000 call options and 16,500 and 16,000 put options. 

The Nifty50’s options contracts expiring on 4 August have sizable positions at 17,500 and 17,300 call options and 17,000 and 16,900 put options. 

As per options data, the broad range for the Nifty50 is between 16,200 and 17,800 levels. Its immediate support is at 16,800 and resistance is at 17,400 levels.

Bank Nifty 

The Bank Nifty witnessed profit-booking on Friday and closed the session 0.3% higher at 37,491. Among stocks, IDFC First Bank(+2.6%) and IndusInd Bank(+2.5%) were the top gainers, while PNB(-3.9%) and Bandhan Bank(-1.5%) were the top losers. 

The Bank Nifty’s options contracts expiring on 25 August have sizable positions at 39,000 and 38,000 call options and 36,000 and 37,000 put options. 

The Bank Nifty’s options contracts expiring on 4 August have sizable positions at 38,000 and 37,500 call options and 37,000 and 37,500 put options. 

As per the options data, the broad range for the Bank Nifty is between 36,200 and 38,400   levels. Its immediate support is at 36,900 and resistance is at 37,800  levels. 

*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.