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F&O Morning Update for 14 December 2022

Asian Markets Update @ 7:30 am

The SGX Nifty was trading higher by 94 points at 7:30 am, signalling a positive start for the Nifty50 today. Major Asian markets were also trading in the green. Nikkei 225 in Japan rose 0.7%, while Hong Kong’s Hang Seng index gained 0.8%.

Global Markets Update

U.S. stocks rallied on Tuesday and ended the volatile day with gains. The jump came after inflation rose less than expected in November. The Consumer Price Index (CPI) rose 7.1% from a year ago and 0.1% over the prior month. Market participants expected prices to rise 7.3% over last year and 0.3% month-on-month.

The Dow Jones rose 0.3% to 34,108, while the S&P 500 added 0.7% to finish at 4,019. The tech-focused Nasdaq climbed more than 1% and closed the session at 11,256.


Index Action

Nifty50 @ 18,608 📈110 (+0.6%)

Amid favourable global cues and easing of India’s retail inflation, the Nifty50 index reclaimed the psychologically crucial 18,500 mark on the back of a short-covering rally.

Nifty50’s options contracts expiring on 29 December have sizable positions at 19,000 and 20,000 call options and 18,000 and 18,500 put options.

Nifty50’s options contracts expiring on 15 December have sizable positions at 18,600 and 19,000 call options and 18,500 and 18,600 put options.

As per options data and OI analysis, the broad range for the Nifty50 is between 18,000 and 19,200 levels. On the other hand, 18,400 and 18,800 are the critical levels to watch for the current week.

Bank Nifty @ 43,946 📈237 (+0.5%)

After a gap-up start, the Bank Nifty index continued its positive momentum and closed at record high levels. Except for AU Small Finance Bank (-1.9%), all the eleven stocks contributed to the up move and closed in the green. Punjab National Bank (+3.1%) and IndusInd Bank (+2.3%) climbed the most.

Bank Nifty’s options contracts expiring on 29 December have sizable positions at 44,000 and 45,000 call options and 43,000 and 42,000 put options.

Bank Nifty’s options contracts expiring on 15 December have sizable positions at 44,000 and 44,500 call options and 43,500 and 43,000 put options.

As per options data and OI analysis, the broad range for the Bank Nifty is between 43,000 and 44,600 levels. On the other hand 43,700 and 44,200 are the critical levels to watch for the current week.


FII and DII Data**💰

In the cash market, both FIIs and DIIs turned net buyers worth ₹619 crore and ₹36 crore. In the derivatives market, FIIs bought index futures worth ₹556 and sold index options worth ₹5,034 crore. Further, they sold stock futures worth ₹1,673 crore and bought stock options worth ₹63 crore.

India VIX

The India VIX, which measures the implied volatility of Nifty50 options slipped 3.3% to 12.88, lowest in 15-months.


Stock Action📊

Long build-up was seen in Polycab, Astral, Abbott India, LIC Housing Finance and RBL Bank.

Short build-up was seen in Dr. Lal Pathlabs, Laurus Labs, Can Fin Homes, Jubilant FoodWorks and Lupin.

Under F&O Ban: BHEL, Delta Corp and GNFC.


*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.

Categories: F&O