F&O Morning Update for 21 October 2021

Global Markets Update

SGX Nifty is trading flat, up by 4 points. Major Asian markets are mixed, with Nikkei trading down by nearly 0.3% and Hang Seng trading up by almost 1.3%. 

European markets closed flat to positive in the range of 0.1% to 0.5%. US markets also closed in the green, with Dow Jones and NASDAQ closing 0.4% higher.

Long Build-up was seen in stocks like Indus Towers, Metropolis, Zee Entertainment, Bharti Airtel and Can Fin Homes.  

Short Build-up was seen in stocks like Voltas, Indiabulls Hsg Fin, Ipca Labs, Aarti Industries and HUL. 

F&O Stocks in Ban:

Stocks in Ban: Amara Raja Batteries, Escorts, Idea, IRCTC, L&T FH, NALCO, PNB, SAIL, Sun TV and Tata Power

Stocks added: L&T FH and Tata Power

Stocks out of ban: BHEL

FII/DII Activity**

In the cash market, FIIs were net sellers for ₹1,843 crore while DIIs were net sellers for ₹1,680 crore. In the Derivatives market, FIIs sold index futures worth ₹298 crores while they sold Index options worth ₹1,492 crores. They sold stock futures worth ₹2,198 crores and sold stock options worth ₹99 crores.

Index Action

Nifty50

Nifty50 saw sharp profit-booking yesterday as it closed down by 152 points at 18,266.   

India VIX climbed higher to 18.3 levels indicating high volatility in the coming days.  

The October monthly series options have sizable positions at 18,500 and 19,000 call options and 18,000 and 17,500 put options. Further additions were seen at 18,600 call options and 18,400 put options. 

The October 21 weekly options continue to add to their significant positions at 18,500 and 18,600 call options and 18,200 and 18,000 put options. 

Options data suggests a broad range for the Nifty50 at 17,500 and 19,000 levels, its immediate support at 18,200, and resistance at 18,600 levels. 

Bank Nifty

Bank Nifty was enthused by Moody’s rerating the Indian Banking sector from “negative” to “stable”. Bank Nifty closed flat yesterday; 22 points lower at 39,518. 

The October monthly series options have significant positions at 39,500 and 40,000 call options and 38,000 and 39,500 put options.

The October 21 weekly options have significant positions at 39,800 and 40,000 call options and 39,000 and 39,500 put options.

Options data suggests a broad range for Bank Nifty at 38,000 and 40,000 levels. Its Immediate support stands at 39,300 and resistance is at 40,000 levels. 

*In Futures and Options or F&O, Long build-up means an increase in Open Interest (OI) and increase in price, and Short build-up means an increase in Open Interest (OI) and decrease in price.

 **Source: nseindia.com. Cash market figures are provisional.