F&O Morning Update for 25 October 2021

Global Markets Update

SGX Nifty is trading flat; up by 8 points. Major Asian markets are trading mixed with Nikkei trading down by nearly 0.6% and Hang Seng trading up nearly 0.4%. 

On Friday, European markets closed positive in the range of 0.2% to 0.7%. US markets also saw a mixed closing with the Dow Jones closing 0.2% higher and NASDAQ closing 0.8% lower.

Stock Action

Long Build-up was seen in stocks like Federal Bank, IEX, RBL Bank, Kotak Mahindra Bank and Muthoot Finance. 

Short Build-up was seen in stocks like Hindalco, Can Fin Homes, IGL, Dr.Lal Pathlabs and Indiamart. 

F&O Stocks in Ban:

Stocks in Ban:  Escorts, Indiabulls Housing, Idea, IEX, PNB and SAIL

Stocks added: - Indiabulls Housing

Stocks out of ban: - Amara Raja Batteries, IRCTC, L&T FH, NALCO, Sun TV and Tata Power

FII/DII Activity**

In the cash market, FIIs were net sellers for ₹2,697 crore while DIIs were net buyers for ₹1,029 crore. In the Derivatives market, FIIs sold index futures worth ₹610 crore while they sold Index options worth ₹917 crore. For stocks, they sold stock futures worth ₹1,087 crore and sold stock options worth ₹216 crore.

Index Action

Nifty50

On Friday, profit booking continued for Nifty50 but it managed to hold on to the 18,000 level.  It closed 63 points down at 18,114.   

India VIX dropped to 17.5 but continues to indicate big swings and volatile sessions ahead.

The October monthly series options have sizable positions at 18,200 and 18,500 call options and 18,200 and 17,500 put options. Further additions were seen at both 18,200 call and put options. 

As per the options data, the broad range for Nifty50 is between 17,500 and 18,800 levels. Its immediate support is 17,800 and resistance is at 18,300 levels. 

Bank Nifty

On Friday, Bank Nifty continued to surge and touched a high of 40,587. It closed 293 points higher at 40,323 levels. 

The October monthly series options have significant positions at 40,500 and 41,000 call options and 40,000 and 39,000 put options. 

As per the options data, the broad range for Bank Nifty is between 39,200 and 41,000. Its immediate support is 39,700 and resistance is at 40,600 levels. 

*In Futures and Options or F&O, Long build-up means increase in Open Interest (OI) along with increase in price and Short build-up means increase in Open Interest (OI) along with decrease in price.

 **Source: nseindia.com. Cash market figures are provisional.