F&O Morning Update for 18 February 2022

Global Markets Update

SGX Nifty is trading in the red, down by 88 points. Major Asian markets are also trading lower,  Japan’s Nikkei is down nearly 1%, while Hong Kong’s Hang Seng index slipped 0.6%. 

European markets closed flat to negative in the range of -0.8% to -0.2%. The US markets closed in the red, as simmering tensions between Ukraine and Russia kept investors on edge. The Dow Jones declined 1.7%, while NASDAQ tumbled 2.8%. 

Stock Action

Long build-up was seen in Page Industries, Balkrishna Industries, Shriram Transport Finance, ICICI Prudential and Siemens. 

Short build-up was seen in BHEL, Atul Ltd, ICICI Bank, Alembic Pharma and Muthoot Finance. 

F&O stocks in ban

Stocks in ban: Escorts and Indiabulls Housing Finance 

Stocks added: 

Stocks out of ban: SAIL

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹1,242 crore, while DIIs were net buyers of ₹901 crore. In the derivatives market, FIIs bought index futures worth ₹890 crore and bought index options worth ₹7,017 crore. Further, they bought stock futures worth ₹899 crore and sold stock options worth ₹149 crore.

Index Action

Nifty50

The Nifty50 oscillated between positive and negative territories and ended the day in red. It closed 17 points lower at 17,304. On a volatile day, Banking and Pharma stocks pulled the index lower, while gains in Oil & Gas and FMCG stocks lent support.

The India VIX climbed to 22.00.  

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

As per options data, the broad range for the Nifty50 is between 16,200 and 18,200 levels. Its immediate support is at 16,900 and resistance is at 17,800 levels.

Bank Nifty 

The Bank Nifty declined more than 1% and somehow held the 37,500 mark. It closed 422 points lower at 37,531. All 12 stocks of the banking index closed in red, with RBL Bank and Axis Bank losing the most.

The Bank Nifty’s monthly options expiring on February 24 have sizable positions at 38,500 and 39,000 call options and 37,500 and 37,000 put options. 

As per options data, the broad range for the Bank Nifty, is between 36,300 and 39,900 levels. Its immediate support is at 37,100 and resistance is at 38,900 levels.