F&O Morning Update for 27 June 2022

Global Markets Update

The SGX Nifty is trading in the green, up by 161 points. Major Asian markets are trading higher. In Japan, the Nikkei jumped 1.0% and Hong Kong’s Hang Seng climbed 1.5% at 7 am India time. 

On Friday, the US markets snapped the losing streaks and closed higher. The Dow Jones rose 2.6%, while the Nasdaq climbed 3.3%. European markets ended higher in the range of 1.5% to 3.2%.  

Stock Action

Long build-up was seen in JK Cement, Crompton Greaves, Indraprastha Gas, Bosch and Gujarat State Petronet.

Short build-up was seen in L&T Technology Services, Atul Ltd, LTI, Mindtree and Mphasis. 

F&O stocks in ban

Stocks in ban: Delta Corp, Indiabulls Housing Finance, RBL Bank and Sun TV

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹2,353 crore, while DIIs were net buyers of ₹2,213 crore. In the derivatives market, FIIs bought index futures worth ₹667 crore and sold index options worth ₹1,018 crore. Further, they bought stock futures worth ₹1,408 crore and sold stock options worth ₹44 crore.

Index Action

Nifty50

After a respite from soaring commodity prices, the Nifty50 closed nearly 1% higher on Friday. Auto, financials and metal stocks rallied higher, while IT stocks were the only laggards. The Nifty50 added 142 points and closed at 15,699.

The India VIX slipped 1.6% to 20.55.

The Nifty50’s options contracts expiring on 30 June have sizable positions at 16,000 and 15,900 call options and 15,500 and 15,400 put options. 

As per options data, the broad range for the Nifty50 is between 14,900 and 16,400 levels. Its immediate support is at 15,400 and resistance is at 15,900 levels.

Bank Nifty 

The Bank Nifty maintained its positive start and ended above the 33,600-mark. Led by IDFC First Bank and Bank of Baroda, all the 12 stocks of the banking index closed in the green. The Bank Nifty rose 492 points and closed at 33,627. 

The Bank Nifty’s options contracts expiring on 30 June have sizable positions at 34,000 and 35,000 call options and 33,000 and 33,500 put options. 

As per the options data, the broad range for the Bank Nifty is between 32,400 and 34,600 levels. Its immediate support is at 33,200 and resistance is at 34,100 levels. 

*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.