F&O Morning Update for 12 October 2022

Asian Markets Update @ 7:40 am 

The SGX Nifty was trading higher by 29 points at 7:40 am, signalling a flat to positive start for the Nifty50 today. Among Asian markets, Japan’s Nikkei 225 declined 0.1% while Hong Kong's Hang Seng index tanked nearly 2%.

Global Markets Update 

U.S. stocks closed Tuesday’s session on a mixed note as investors gear up ahead of the release of September’s inflation report and FOMC minutes. While the inflation report is due on Thursday, the FOMC minutes will be released later today.

The Dow Jones edged up 0.1% to 29,239, while the Nasdaq Composite tumbled 1.1% to a fresh two-year low and closed at 10,426. The S&P 500 declined 0.6% to close at 3,588. The European markets closed yesterday’s session lower and declined in the range of 0.4% to 1%.

Index Action

Nifty50 @ 16,983 📉▼ 257 (-1.4%)

After a flat start, the Nifty50 remained under pressure and closed lower for the third straight day. The index witnessed selling pressure in the second half of the trading session and slipped below the psychologically crucial 17,000 mark.

All the major sectoral indices ended lower, with Realty (-3.0%), Metal (-2.2%) and IT (-1.9%) declining the most. 

Nifty50’s options contracts expiring on 27 October are scattered and have sizable positions at 18,000 and 17,100 call options and 16,000 and 17,000 put options. 

Nifty50’s options contracts expiring on 13 October have sizable positions at 17,200 and 17,500 call options and 17,000 and 16,600 put options. 

As per options data and OI analysis, the broad range for the Nifty50 is between 16,000 and 17,600 levels. On the other hand, 16,700 and 17,200 are the critical levels to watch for the current week.

Bank Nifty @  38,712 📉▼ 380 (-0.9%)

After a flat start, the Bank Nifty traded in a range with a negative bias. The index faced resistance around its 50-DMA and closed lower for the third consecutive day.

Among Bank Nifty stocks, Axis Bank (+1.1%) and Federal Bank (+0.8%) were the only stocks to end in green. IndusInd Bank (-3.7%) and Punjab National Bank (-2.3%) were the top laggards.

Bank Nifty’s options contracts expiring on 27 October have sizable positions at 41,000 and 39,000 call options and 38,000 and 37,000 put options. 

Bank Nifty’s options contracts expiring on 13 October have sizable positions at 39,000 and 40,000 call options and 38,000 and 38,500 put options. 

As per options data and OI analysis, the broad range for the Bank Nifty is between 37,500 and 40,000 levels. On the other hand 38,000 and 39,200 are the critical levels to watch for the current week.

FII and DII Data**💰

In the cash market, FIIs sold shares worth ₹4,612 crore, while DIIs bought shares worth ₹2,430 crore. In the derivatives market, FIIs sold index futures worth ₹1,015 crore and sold index options worth ₹1,629 crore. Further, they sold stock futures worth ₹1,659 crore and sold stock options worth ₹221 crore.

India VIX 

The India VIX, a gauge of the market's volatility in the near term, climbed 4.4% to 20.49.

Stock Action📊

Long build-up was seen in Alkem Laboratories, Axis Bank, Federal Bank, Chambal Fertilisers and Dixon Technologies. 

Short build-up was seen in Delta Corp, IndusInd Bank, Indiamart, Coforge and Ramco Cements. 

Major results today: HCL Tech and Wipro.

Under F&O Ban: Delta Corp, Indiabulls Housing Finance and India Cements.

*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.