F&O Morning Update for 23 February 2022

Global Markets Update

SGX Nifty is trading in the green, up by 93 points. In Asia, Hong Kong's Hang Seng index rose 0.4%, while markets in Japan are closed on account of the holiday.

European markets closed mixed in the range of -0.2% to +0.1%. The US markets closed lower, as rising tensions between Russia and Ukraine dented the market sentiment. The Dow Jones closed 1.4% lower, while NASDAQ slipped 1.2%.

Stock Action

Long build-up was seen in Indiabulls Housing Finance, LTI, Mphasis, Chola Investments and Hindalco. 

Short build-up was seen in DLF, Dalmia Bharat, Godrej Consumer Products, CONCOR and GNFC. 

F&O stocks in ban

Stocks in ban: Escorts, Indiabulls Housing Finance and PNB

Stocks added: Indiabulls Housing Finance

Stocks out of ban: 

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹3,245 crore while DIIs were net buyers of ₹4,108 crore. In the derivatives market, FIIs sold index futures worth ₹1,367 crore and bought index options worth ₹2,864 crore. Further, they bought stock futures worth ₹1,997 crore and bought stock options worth ₹385 crore.

Index Action

Nifty50

The Nifty50 opened with steep losses and extended the losing territory to the fifth session in a row. It slipped 114 points to 17,092. Broad-based selling across sectors pulled the index lower, with Metal, PSU Bank and Realty stocks being the worst drags.

The India VIX closed 16.4% higher at 26.66.  

The Nifty50’s monthly options expiring on February 24 have sizable positions at 17,500 and 17,400 call options and 17,000 and 16,800 put options. Further additions were seen at 17,000 call options and 16,900 put options.

As per options data, the broad range for the Nifty50 is between 16,400 and 18,200 levels. Its immediate support is at 16,700 and resistance is at 17,500 levels.

Bank Nifty 

The Bank Nifty recovered sharply from the opening low of 36,818 but ended the day in the red. It declined 313 points to 37,371. The PSU Banks dragged the index lower, while recovery in the private banks provided some support.

The Bank Nifty’s monthly options expiring on February 24 have sizable positions at 38,000 and 38,500 call options and 37,000 and 36,500 put options. Further additions were seen at 37,000 call options and 36,800 put options.

As per options data, the broad range for the Bank Nifty is between 36,300 and 39,600 levels. Its immediate support is at 36,800 and resistance is at 38,300 levels.