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F&O Morning Update for 20 July 2022

Asian Markets Update @7 am

The SGX Nifty is trading higher by 139 points, signalling a positive start for the Nifty50 today. Major Asian markets are trading in the green after a sharp recovery in the US markets overnight. In Japan, the Nikkei gained 2.1%, while Hong Kong’s Hang Seng index advanced 1.6%.

Global Markets Update

The US markets rebounded on Tuesday following strong earnings reports. The Dow Jones rose 2.4%, while the Nasdaq added 3.1%. The European markets closed higher in the range of 1+% to +2.6%.


Stock Action

Long build-up was seen in Polycab, AU Small Finance Bank, Ramco Cements, Bank of Baroda and RBL Bank.

Short build-up was seen in Coforge, GAIL, HDFC Life, Biocon and Indraprastha Gas.

Stocks in F&O Ban: Delta Corp.

Results today: Ceat, Havells, IndusInd Bank, Wipro, Syngene International and Gland Pharma.


FII/DII Activity**

In the cash market, FIIs were net buyers of ₹976 crore, while DIIs were net sellers of ₹100 crore. In the derivatives market, FIIs bought index futures worth ₹309 crore and sold index options worth ₹463 crore. Further, they sold stock futures worth ₹814 crore and bought stock options worth ₹73 crore.


Index Action

Nifty50

The Nifty50 climbed the 16,300-mark and ended in the green for the third straight session. Banking, auto and metal stocks pushed the index higher, while oil & gas and pharma stocks remained under pressure. The Nifty50 closed at 16,340, near the day's high and gained 62 points.

The India VIX, a gauge of the market's volatility in the near term, climbed 0.2% to 17.20.

The Nifty50’s options contracts expiring on 28 July have sizable positions at 17,000 and 16,500 call options and 16,000 and 15,500 put options.

The Nifty50’s options contracts expiring on 21 July have sizable positions at 16,600 and 16,500 call options and 16,200 and 16,000 put options.

As per options data, the broad range for the Nifty50 is between 15,500 and 16,800 levels. Its immediate support is at 16,100 and resistance is at 16,500 levels.

Bank Nifty

The Bank Nifty surged 1% and closed the day above 35,700-mark. Barring Kotak Mahindra Bank, all the eleven stocks of the index closed in green, with Bank of Baroda and Federal Bank being the top gainers. The Bank Nifty rose 361 points and closed at 35,720.

The Bank Nifty’s options contracts expiring on 28 July are scattered and have sizable positions at 36,000 and 35,500 call options and 35,000 and 34,000 put options.

The Bank Nifty’s options contracts expiring on 21 July have sizable positions at 36,000 and 35,500 call options and 35,000 and 35,500 put options.

As per the options data, the broad range for the Bank Nifty is between 34,500 and 36,800   levels. Its immediate support is at 35,000 and resistance is at 36,200  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.

Categories: F&O