F&O Morning Update for 26 August 2022

Asian Markets Update @7 am 🕖

SGX Nifty is trading higher by 88 points, signalling a positive start for the NIFTY 50 today. Major Asian markets are also trading higher. In Japan, the Nikkei 225 gained 0.9%, while Hong Kong’s Hang Seng index added 0.7%.

Global Markets Update 

U.S markets closed Thursday’s session higher ahead of Federal Reserve Chair Jerome Powell’s Jackson Hole speech. The Dow Jones rose 0.9%, while the tech-heavy Nasdaq advanced 1.6%. European markets ended higher in the range of +0.1% to +0.3%.

Index Action

NIFTY 50 @ 17,522 📉▼ 82 (-0.4%)

NIFTY 50 gave up all its initial gains towards the fag-end and closed the last session of August futures and options series lower. Among major sectoral indices, PSU Bank (+2.7%) and Realty (+1.4%) were the top gainers, while IT (-0.8%) and Metal (-0.5%) were the top losers.

NIFTY 50’s options contracts expiring on 29 September are scattered and have sizable positions at 18,000 and 19,000 call options and 16,500 and 16,000 put options. 

NIFTY 50’s options contracts expiring on 1 September have sizable positions at 17,700 and 17,800 call options and 17,500 and 17,000 put options. 

As per options data, the broad range for the NIFTY 50 is between 16,800 and 18,200 levels. Its immediate support is at 17,400 and resistance is at 17,800 levels.

BANK NIFTY @38,950 📉▼ 87 (-0.2%)

BANK NIFTY started Thursday’s session on a strong note and inched closer to the 39,500 mark. However, the selling pressure at higher levels dragged the index down, and it ended below 39,000. Among stocks, Punjab National Bank (+5.0%) and Bank of Baroda (+1.9%) were the top gainers, while IndusInd Bank (-1.0%) and Axis Bank (-0.9%) were the top losers.

BANK NIFTY’s options contracts expiring on 29 September are scattered and have sizable positions at 40,000 and 41,000 call options and 38,000 and 37,000 put options. 

BANK NIFTY’s options contracts expiring on 1 September have sizable positions at 40,000 and 39,500 call options and 39,000 and 38,000 put options. 

As per the options data, the broad range for the BANK NIFTY is between 37,200 and 39,900 levels. Its immediate support is at 38,200 and resistance is at 39,500 levels. 

FII and DII Data**

In the cash market, FIIs were net buyers of ₹369 crore, while DIIs were net sellers of ₹334 crore. In the derivatives market, FIIs sold index futures worth ₹2,010 crore and bought index options worth ₹13,118 crore. Further, they sold stock futures worth ₹1,779 crore and bought options worth ₹35 crore.

India VIX 

The India VIX, a gauge of the market's volatility in the near term, climbed 6.1% to 19.57. 

Stock Action📊

Long build-up was seen in Crompton Greaves, Indiamart, AB Capital, BHEL and Balrampur Chini.

Short build-up was seen in Coromandel International, Bajaj Finance, Balkrishna Industries, Alkem Labs and Lupin.

*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.