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F&O Morning Update for 27 October 2022

Asian Markets Update @ 7:30 am

The SGX Nifty was trading higher by 119 points at 7:30 am, indicating a positive start for the Nifty50 today. Major Asian markets were trading mixed. The Nikkei 225 in Japan declined 0.1%, while Hong Kong’s Hang Seng index gained 2.5%.

Global Markets Update

U.S. markets closed Wednesday’s choppy session lower after Google’s parent company, Alphabet and Microsoft, posted disappointing quarterly earnings. Shares of Alphabet dropped more than 9% after third-quarter revenue came below expectations, while software giant Microsoft lost 7% after a disappointing revenue forecast.

The Dow Jones gained 0.01% and closed flat at 31,839, while S&P 500 lost 0.7% and ended the day at 3,830. The tech-focused Nasdaq Composite tumbled 2.0% and ended the day at 10,970. The European markets closed yesterday’s session higher, in the range of 0.6% to 1%.


Index Action

Nifty50 @ 17,656 📉74 (-0.4%)

The Nifty50 index snapped a seven-day winning streak and closed lower on Tuesday. The headline index opened higher but failed to sustain early gains, led by losses in Reliance Industries, private banks and FMCG stocks.

Among major sectoral indices, PSU Bank (+3.4%) and Auto (+1.2%) advanced the most, while FMCG (-1.0%) and Private Bank (-0.8%) came under selling pressure.

Nifty50’s options contracts expiring on 27 October have sizable positions at 18,000 and 17,800 call options and 17,500 and 17,300 put options.

As per options data and OI analysis, the broad range for the Nifty50 is between 16,800 and 18,400 levels. On the other hand, 17,300 and 17,900 are the critical levels to watch for the current week.

Bank Nifty @ 41,122  📉182 (-0.4%)

After a gap-up start, the Bank Nifty index witnessed profit booking around the 41,500 mark and lost around half a percent on Tuesday. The index gradually inched lower and settled closer to the day's low.

Among stocks, Punjab National Bank (+5.3%) and Bank of Baroda (+2.7%) were the top gainers, while IDFC First Bank (-3.2%) and Kotak Mahindra Bank (-2.6%) were the only losers. Shares of SBI (+1.4%), the country’s largest lender, touched a fresh all-time high before giving up some of its gains.

Bank Nifty’s options contracts expiring on 27 October have sizable positions at 42,000 and 41,500 call options and 40,000 and 40,500 put options.

As per options data and OI analysis, the broad range for the Bank Nifty is between 40,400 and 42,000 levels. On the other hand 40,800 and 41,600 are the critical levels to watch for the current week.


FII and DII Data**💰

In the cash market, FIIs sold shares worth ₹247 crore, while DIIs bought shares worth ₹872 crore. In the derivatives market, FIIs bought index futures worth ₹52 crore and sold index options worth ₹5,154 crore. Further, they bought stock futures worth ₹2,991 crore and sold stock options worth ₹29 crore.

India VIX

The India VIX, which measures the implied volatility of Nifty50 options dropped 3.1% to 16.88.


Stock Action📊

Long build-up was seen in BHEL, State Bank of India, MCX, Punjab National Bank and Canara Bank.

Short build-up was seen in Hindustan Unilever, Indus Towers, SBI Cards, Interglobe Aviation (Indigo) and Info Edge (Naukri).

Key results today: Indus Towers, SBI Cards and Tata Chemicals.

Under F&O Ban: BHEL and Punjab National Bank.


*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.

Categories: F&O