F&O Morning Update for 23 August 2022

Asian Markets Update @7 am 🕖

SGX Nifty is trading lower by 45 points, signalling a negative start for the Nifty50 today. Major Asian markets are trading flat to negative. In Japan, the Nikkei fell 1.1%, while Hong Kong’s Hang Seng index slipped 0.03%.

Global Markets Update 📊

Stocks on Wall Street closed sharply lower on Monday. The drop comes ahead of the US Federal Reserve gathering later this week in Jackson Hole.

The Dow Jones dropped 1.9%, while the tech-heavy Nasdaq tumbled 2.5%. European markets ended lower in the range of -0.2% to -2.3%.

Index Action

Nifty50 @ 17,490 📉 ▼-267 (-1.5%)

Amid negative global cues, the Nifty50 sank 1.5% on Monday and closed lower for the second straight day. All major sectoral indices ended in the red, with Metal (-2.9%) and Realty (-2.5%) being the top losers. 

The Nifty50’s options contracts expiring on 25 August have sizable positions at 18,000 and 17,600 call options and 17,500 and 17,000 put options. 

As per options data, the broad range for the Nifty50 is between 16,800 and 18,200 levels. Its immediate support is at 17,300 and resistance is at 17,800 levels.

Bank Nifty @38,297 📉▼-688 (-1.7%)

Bank Nifty opened lower and continued to slide further during the day. It tanked 688 points and closed Monday's session at 38,297. All the twelve stocks of the index closed in the red, with Punjab National Bank (-2.8%) and Kotak Mahindra Bank (-2.3%) being the top losers.  

The Bank Nifty’s options contracts expiring on 25 August have sizable positions at 39,500 and 38,500 call options and 38,500 and 37,000 put options. 

As per the options data, the broad range for the Bank Nifty is between 37,200 and 39,500 levels. Its immediate support is at 37,800 and resistance is at 38,800 levels. 

FII and DII Data**

In the cash market, both FIIs and DIIs offloaded shares worth ₹453 crore and ₹85 crore. In the derivatives market, FIIs bought index futures worth ₹542 crore and bought index options worth ₹2,992 crore. Further, they sold stock futures worth ₹213 crore and sold options worth ₹1 crore.

India VIX 

The India VIX, a gauge of the market's volatility in the near term, climbed 4.1% to 19.04. 

Stock Action📊

Long build-up was seen in Sun TV, PI Industries, ITC, Tata Communications and Coal India.

Short build-up was seen in Trent, Torrent Power, ICICI Lombard, PVR and Metropolis.

Stocks under F&O ban: Tata Chemicals.

*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.