F&O Morning Update for 21 March 2022

Global Markets Update

SGX Nifty is trading in the green, up by 135 points. Major Asian markets are also trading higher. Japan’s Nikkei climbed 0.6%(7 am), and Hong Kong’s Hang Seng index jumped 0.8%(7 am).  

European markets closed higher in the range of 0.1% to 0.2%. Aided by tech stocks, the US markets rallied higher. The Dow Jones rose 0.8%, while NASDAQ jumped 2%. 

Stock Action

Long build-up was seen in Coromandel, Whirlpool, GNFC, Trent and United Breweries. 

Short build-up was seen in ABB, Apollo Hospitals, L&T Technology Services, Gujarat State Petronet and Crompton. 

F&O stocks in ban

Stocks in ban: Indiabulls Housing Finance

Stocks added: Indiabulls Housing Finance

Stocks out of ban: -

FII/DII Activity**

In the cash market, FIIs were net buyers of ₹2,800 crore, while DIIs were net sellers of ₹678 crore. In the derivatives market, FIIs bought index futures worth ₹4,303 crore and bought index options worth ₹6,041 crore. Further, they bought stock futures worth ₹823 crore and bought stock options worth ₹91 crore.

Index Action

Nifty50

The Nifty50 posted gains for the second consecutive week and soared above its 200 DMA on Friday. It was yet another day of broad-based buying with financials, auto and metal stocks posting gains, and IT stocks ending lower on profit-booking. The Nifty50 ended 311 points higher at 17,287.

The India VIX dropped 6.2% to 22.61.

The Nifty50’s monthly options expiring on March 31 have sizable positions at 18,000 and 17,500 call options and 17,000 and 16,000 put options. 

The Nifty50’s weekly options expiring on March 24 have sizable positions at 17,500 and 17,300 call options and 16,500 and 17,000 put options. 

As per options data, the broad range for the Nifty50 is between 16,400 and 18,300 levels. Its immediate support is at 16,900 and resistance is at 17,700 levels.

Bank Nifty 

The Bank Nifty had a strong closing on Friday and rallied 1.9%. The private banks outperformed their PSU peers by 1% and pushed the Bank Nifty higher by 680 points to 36,428.  

The Bank Nifty’s monthly options expiring on March 31 have sizable positions at 38,000 and 37,000 call options and 36,000 and 35,000 put options. 

The Bank Nifty’s weekly options expiring on March 24 have sizable positions at 37,000 and 37,500 call options and 36,000 and 35,000 put options. 

As per options data, the broad range for the Bank Nifty is between 34,500 and 38,200 levels. Its immediate support is at 35,800 and resistance is at 37,400 levels.