F&O Morning Update for 26 October 2021

Global Markets Update

SGX Nifty is trading up by 53 points. Major Asian markets are trading in the green with Nikkei trading up by nearly 1.8% and Hang Seng trading flat with a positive bias. 

European markets closing was mixed in the range of -0.3% to +0.3%. US markets  saw a positive closing with the Dow Jones closing 0.18% higher and NASDAQ closing 0.9% higher.

Stock Action

Long Build-up was seen in stocks like Sun TV, SBI, Bank Of Baroda, PVR and ICICI Bank.

Short Build-up was seen in stocks like Ramco Cements, Bandhan Bank, Crompton, Colgate and Coforge

F&O Stocks in Ban

Stocks in Ban: Escorts, Indiabulls Housing, IEX, NMDC, SAIL and Sun TV

Stocks added: NMDC and Sun TV

Stocks out of ban: Idea and PNB 

FII/DII Activity**

In the cash market, FIIs were net sellers for ₹2,459 crores while DIIs were net buyers for ₹2,390 crore. In the Derivatives market, FIIs sold index futures worth ₹808 crore while they bought Index options worth ₹777 crore. For stocks, they bought stock futures worth ₹328 crore and sold stock options worth ₹75 crore.

Index Action

Nifty50

Volatility was the theme for yesterday on Nifty50 as it swung over 270 points before closing flat at 18,125 levels.  

India VIX inched up to 17.61 suggesting high volatility for the markets in the coming days. 

Nifty October monthly series options have sizable positions at 18,200 and 18,500 call options and 18,000 and 17,500 put options. Further additions were seen at 18,200 call options and 18,000 put options. 

Options data suggests a broad range for Nifty50 between 17,500 and 18,800 levels. Its immediate support is at 17,900 and resistance is at 18,300 levels. 

Bank Nifty 

Bank Nifty came within striking distance of the 42,000 mark as it touched an all-time high of 41,829. Profit-booking set in at higher levels and Bank Nifty closed at 41,192 levels, up by 868 points. 

The October monthly series options have significant positions at 41,500 and 42,000 call options and 41,000 and 40,000 put options. 

Options data suggests a broad range for Bank Nifty between 39,500 and 42,000 levels. It’s Immediate support is at 40,500 and resistance is at 41,800 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.