F&O Morning Update for 23 June 2022

Global Markets Update

The SGX Nifty is trading in the green, up by 38 points. Major Asian markets are trading higher. In Japan, the Nikkei rose 0.6% and Hong Kong’s Hang Seng index jumped 1% at 7 am India time. 

The US markets gave up gains after the Fed Chairman told the Congress that the central banks would keep increasing interest rates until inflation slows to its 2% target. The Dow Jones fell 0.1%, while the Nasdaq slipped 0.1%. European markets ended lower in the range of 0.8% to 1.1%.  

Stock Action

Long build-up was seen in PVR, TCS, HPCL, Hero MotoCorp and Mahanagar Gas. 

Short build-up was seen in Sun TV, Hindustan Copper, Metropolis, ICICI Prudential and Hindalco.   

F&O stocks in ban

Stocks in ban: Indiabulls Housing Finance, RBL Bank and Sun TV

Stocks added: Sun TV

Stocks out of ban:  

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹2,920 crore, while DIIs were net buyers of ₹1,859 crore. In the derivatives market, FIIs sold index futures worth ₹761 crore and bought index options worth ₹4,847 crore. Further, they bought stock futures worth ₹830 crore and bought stock options worth ₹196 crore.

Index Action

Nifty50

Following weak global sentiment, the Nifty50 fell below the-15,500 mark and closed 1.4% lower, dragged by metal, realty and oil & gas stocks. With 44 out of its 50 stocks closing in the red, the Nifty50 declined 225 points to close at 15,413.

The India VIX climbed 0.8% to 21.30.

The Nifty50’s options contracts expiring on 30 June have sizable positions at 16,000 and 15,500 call options and 15,500 and 15,000 put options. 

The Nifty50’s options contracts expiring on 23 June have sizable positions at 15,700 and 15,500 call options and 15,200 and 15,300 put options. 

As per options data, the broad range for the Nifty50 is between 14,800 and 16,400 levels. Its immediate support is at 15,300 and resistance is at 15,700 levels.

Bank Nifty 

The Bank Nifty slipped below the 33,000-mark and ended 1% lower. All the 12 stocks of the index closed in the red, with IDFC First Bank, IndusInd Bank and AU Small Finance Bank being the biggest laggards. The Bank Nifty lost 346 points to close at 32,845.

The Bank Nifty’s options contracts expiring on 30 June have sizable positions at 34,000 and 35,000 call options and 33,000 and 32,500 put options. 

The Bank Nifty’s options contracts expiring on 23 June have sizable positions at 33,500 and 33,000 call options and 32,000 and 32,500 put options. 

As per the options data, the broad range for the Bank Nifty is between 31,600 and 34,000 levels. Its immediate support is at 32,200 and resistance is at 33,400 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.