F&O Morning Update for 24 January 2022

Global Markets Update

SGX Nifty is trading in the red, down by 143 points. Major Asian markets are trading in the red; Nikkei is trading 0.8% lower and Hang Seng is down 1.3%. 

European markets closed lower in the range of -1.9% to -1.2%. US markets slipped lower in trade. Dow Jones closed 1.3% lower and NASDAQ closed 2.7% lower. 

Stock Action

Long build-up was seen in Chola Investment, Persistent, Hindalco and Tata Consumer. 

Short build-up was seen in Voltas, Dr.Lal Pathlabs, SAIL, Info Edge and Bajaj Finserv.  

F&O stocks in ban

Stocks in ban: BHEL, Escorts, Indiabulls Housing Finance, NALCO and Vodafone Idea

Stocks added: NALCO

Stocks out of ban: 

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹3,148 crore while DIIs were net buyers of ₹269 crore. In the derivatives market, FIIs sold index futures worth ₹616 crore and bought index options worth ₹415 crore. Further, they sold stock futures worth ₹1,002 crore and sold stock options worth ₹314 crore.

Index Action

Nifty50

On Friday, the Nifty50 ended a volatile session with losses and slumped 3.5% last week. Foreign portfolio investors' selling spree and rising inflation dampened investors sentiment as the Nifty50 ended the day 139 points lower at 17,617.

India VIX climbed 6.1% to 18.88.  

The Nifty50’s monthly options expiring on January 27 have sizable positions at 18,000 and 17,900 call options and 17,500 and 17,600 put options. Further additions were seen at both 17,600 call and put options.

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

Bank Nifty 

The Bank Nifty slipped little over 2% last week amid sharp selling pressure in the markets. On Friday, overall breadth for the Bank Nifty remained negative with 9 out 12 stocks closing in the red. It dropped 276 points to close at 37,574. 

The Bank Nifty’s monthly options expiring on January 27 have sizable positions at 38,000 and 38,500 call options and 37,000 and 37,500 put options. Further additions were seen at both 37,500 call options and put options.

As per the options data, the broad range for Bank Nifty, is between 36,300 and 38,700 levels. Its immediate support is at 36,900 and resistance is at 38,200 levels.