F&O Morning Update for 24 May 2022

Blog | F&O

Global Markets Update

The SGX Nifty is trading in the green, up by 30 points. Major Asian markets are trading lower. In Japan, the Nikkei fell 0.2%, and Hong Kong’s Hang Seng index dropped 0.6% at 7 am India time.

The US markets ended higher as buying emerged in financials and tech stocks. The Dow Jones rose 1.9%, while the Nasdaq climbed 1.5%. European markets closed higher in the range of 1.1% to 1.6%.  


Stock Action

Long build-up was seen in Mahindra & Mahindra, HAL, Cummins India, Ashok Leyland and Maruti Suzuki. 

Short build-up was seen in Jindal Steel & Power, UBL, JK Cement, Tata Steel and IDFC First Bank.  

Major companies announcing results today are Adani Ports, Balkrishna Industries, Balrampur Chini and IPCA Labs. 


F&O stocks in ban

Stocks in ban: Delta Corp, GNFC, Indiabulls Housing Finance 

Stocks added: 

Stocks out of ban: BHEL and PNB 


FII/DII Activity**

In the cash market, FIIs were net sellers of ₹1,951 crore, while DIIs were net buyers of ₹1,445 crore. In the derivatives market, FIIs sold index futures worth ₹42 crore and bought index options worth ₹2,099 crore. Further, they bought stock futures worth ₹399 crore and bought stock options worth ₹185 crore.


Index Action

Nifty50

The Nifty50 started the last week of the May series expiry on a weak note. Despite a strong start,  the index came under selling pressure from higher levels. Yesterday, the Metal sector tanked over 8%, followed by Oil & Gas, while the Auto and IT sectors cushioned the fall. The Nifty50 closed 51 points lower at 16,214.

The India VIX climbed 1.2% to 23.39.

The Nifty50’s options contracts expiring on 26 May have sizable positions at 16,500 and 16,800 call options and 16,000 and 15,800 put options. 

As per options data, the broad range for the Nifty50 is between 15,500 and 16,800 levels. Its immediate support is at 16,000 and resistance is at 16,500 levels.

Bank Nifty 

The Bank Nifty traded in the green for most of the day but declined nearly 700 points from the day's high after the RBI Governor hinted at another rate hike in June. Both PSU and private bank indices gave up their initial gains and ended in the red. The Bank Nifty closed 28 points lower at 34,247.

The Bank Nifty’s options contracts expiring on 26 May have sizable positions at 35,000 and 34,500 call options and 34,000 and 33,000 put options. 

As per the options data, the broad range for the Bank Nifty is between 33,000 and 35,500 levels. Its immediate support is at 33,700 and resistance is at 34,800 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.

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