F&O Morning Update for 18 January 2022

Global Markets Update

SGX Nifty is trading in the red, down by 32 points. Major Asian markets are trading in green; Nikkei climbed 0.7% and Hang Seng is up 0.2%. 

European markets closed higher in the range of 0.3% to 0.9%. US markets were shut on account of a holiday. 

Stock Action

Long build-up was seen in ONGC, JK Cement, LIC Housing Finance, Ultratech Cement and Apollo Tyres. 

Short build-up was seen in HCL Tech, Granules, Dr.Lal Pathlabs, Rain Industries and IGL. 

F&O stocks in ban

Stocks in ban: Granules, Escorts, Indiabulls Housing Finance, SAIL and Vodafone Idea

Stocks added: Granules

Stocks out of ban: 

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹855 crore while DIIs were net sellers of ₹115 crore. In the derivatives market, FIIs sold index futures worth ₹827 crore and bought index options worth ₹2,552 crore. Further, they sold stock futures worth ₹977 crore and sold stock options worth ₹563 crore.

Index Action

Nifty50

The Nifty50 ended a range-bound day with minor gains and closed above 18,300. Auto and Energy stocks led the index higher while Pharma and Banking stocks exerted pressure. It rose 52 points to close at 18,308. 

India VIX climbed 1.2% to 16.76.  

The Nifty50’s monthly options expiring on January 27 have sizable positions at 18,500 and 19,000 call options and 18,000 and 17,500 put options. 

The Nifty50’s weekly options expiring on January 20 have sizable positions at 18,300 and 18,400 call options and 18,000 and 18,200 put options. Further additions were seen at both 18,300 call and put options, 

As per options data, the broad range for the Nifty50 is between 17,200 and 18,900 levels. Its immediate support is at 17,700 and resistance is at 18,500 levels.

Bank Nifty 

The Bank Nifty’s initial bounce was sold into and it witnessed the selling pressure throughout the day. It slipped 154 points to close at 38,216.

The Bank Nifty’s monthly options expiring on January 27 have sizable positions at 38,500 and 39,000 call options and 37,000 and 38,000 put options. 

The Bank Nifty’s weekly options expiring on January 20 have sizable positions at 38,500 and 39,000 call options and 38,000 and 37,500 put options. Further additions were seen at 38,500 call options and 38,300 put options.

As per the options data, the broad range for the Bank Nifty, is between 36,800 and 39,600 levels. Its immediate support is at 37,800 and resistance is at 39,000 levels.