F&O Morning Update for 27 January 2022

Global Markets Update

SGX Nifty is trading in the red, down by 251 points. Major Asian markets are trading in the red. The Nikkei slipped almost 1.5% (7 am)  and Hang Seng fell 1.9% (7 am). 

The European markets closed firmly in green in the range of 1.3% to 2.2%. The US markets closed mixed after the early market rally, as the Federal Reserve signalled its plans to begin raising interest rates soon to fight a spike in inflation. The Dow Jones hit a new 1-month low as it declined 0.4%, while the NASDAQ closed flat, up by 0.02%

Stock Action

Long build-up was seen in Atul Ltd, Maruti Suzuki, Vodafone Idea, Bank of Baroda and SRF. 

Short build-up was seen in Pidilite, Ramco Cements, Indiamart, Titan and Wipro. 

F&O stocks in ban

Stocks in ban: -

Stocks added: Escorts and NALCO

Stocks out of ban: 

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹7,094 crore while DIIs were net buyers of ₹4,534 crore. In the derivatives market, FIIs sold index futures worth ₹155 crore and sold index options worth ₹4,957 crore. Further, they bought stock futures worth ₹532 crore and sold stock options worth ₹436 crore.

Index Action

Nifty50

The Nifty50 recovered opening losses and staged a strong recovery, breaking a five-day losing streak on Tuesday. The participation was broad-based, and all sectoral indices closed in the green, except IT. The Nifty50 surged 128 points to close at 17,277.

The India VIX slipped 6.4% to 21.35.  

The Nifty50’s monthly options expiring on January 27 have sizable positions at 17,500 and 17,600 call options and 17,000 and 16,500 put options. 

As per options data, the broad range for the Nifty50 is between 16,400 and 17,900 levels. Its immediate support is at 16,900, and resistance is at 17,500 levels.

Bank Nifty 

The Bank Nifty surged 2% as markets cheered the robust numbers posted by Axis Bank. The PSU bank stocks outperformed the private banks, and the Bank Nifty jumped 759 points and closed at 37,706.

The Bank Nifty’s monthly options expiring on January 27 have sizable positions at 38,000 and 39,000 call options and 36,000 and 37,000 put options. 

As per the options data, the broad range for the Bank Nifty, is between 35,500 and 38,800 levels. Its immediate support is at 36,400, and resistance is at 38,300 levels.