F&O Morning Update for 25 March 2022

Global Markets Update

Amid mixed global cues, the SGX Nifty is trading in the green , up by 54 points. Major Asian markets are trading lower. Japan’s Nikkei slipped 0.1%(7 am), and Hong Kong’s Hang Seng index dropped 0.9%(7 am).

European markets closed mixed in the range of -0.3% to +0.1%. The U.S markets bounced back from Wednesday’s losses and closed higher. The Dow Jones rose 1%, while NASDAQ rallied 1.9%.

Stock Action

Long build-up:  Zee Entertainment, IDFC, FSL, Dr. Reddy's and Mindtree. 

Short build-up: L&T Finance, HPCL, Max Financial, CG Consumer and Kotak Mahindra Bank.

F&O stocks in ban

Stocks in ban: Balrampur Chini, Delta Corp, Indiabulls Housing Finance, L&T Finance, SAIL, Sun TV and Vodafone Idea

Stocks added: Vodafone Idea and L&T Finance

Stocks out of ban: GNFC

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹1,740 crore, while DIIs were net buyers of ₹2,091 crore. In the derivatives market, FIIs sold index futures worth ₹858 crore and bought index options worth ₹5,853 crore. Further, they sold stock futures worth ₹1,190 crore and sold stock options worth ₹251 crore.

Index Action

Nifty50

The Nifty50 recovered from its opening losses but failed to close in green in a volatile session. Gains in Pharma, Metal and IT stocks pushed the index higher, while Auto and Banking stocks dragged it lower. The Nifty50 fell 22 points to 17,222.

The India VIX dropped 3.3% to 23.93.

The Nifty50’s monthly options expiring on March 31 have sizable positions at 18,000 and 17,500 call options and 17,000 and 17,200 put options. 

As per options data, the broad range for the Nifty50 is between 16,200 and 18,000 levels. Its immediate support is at 16,900 and resistance is at 17,600 levels.

Bank Nifty 

The Bank Nifty came under selling pressure and declined 1.7%. It faced severe resistance near the 36,000 levels. With the Private Banks index correcting more than 1%, the Bank Nifty fell 620 points to 35,527.

The Bank Nifty’s monthly options expiring on March 31 have sizable positions at 36,000 and 36,500 call options and 35,500 and 35,000 put options. 

As per options data, the broad range for the Bank Nifty is between 34,300 and 37,800 levels. Its immediate support is at 35,000 and resistance is at 36,200 levels.