F&O Morning Update for 29 March 2022

Global Markets Update

Amid positive global cues, the SGX Nifty is trading in the green, up by 108 points. Major Asian markets are also trading higher. Japan’s Nikkei jumped 0.7%(7 am), and Hong Kong’s Hang Seng index rose 0.3%(7 am).

European markets closed mixed in the range of -0.1% to +0.7%. U.S markets closed higher on the back of drop in crude oil prices and the prospect of more ceasefire talks between Russia and Ukraine. The Dow Jones gained 0.2%, while NASDAQ added 1.3%.

Stock Action

Long build-up: Atul Ltd, PVR, PNB, Dalmia Bharat and Coal India. 

Short build-up: JK Cement, Max Financial, UBL, BHEL and Aarti Industries. 

F&O stocks in ban

Stocks in ban: PVR, Sun TV and Vodafone-Idea

Stocks added: PVR

Stocks out of ban: Indiabulls Housing Finance, L&T Finance and SAIL

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹801 crore, while DIIs were net buyers of ₹1,161 crore. In the derivatives market, FIIs bought index futures worth ₹1,353 crore and bought index options worth ₹1,805 crore. Further, they sold stock futures worth ₹504 crore and bought stock options worth ₹774 crore.

Index Action

Nifty50

The Nifty50 reversed its morning losses and started the week with a positive closing. Gains in metal, Oil & Gas and banking stocks pushed the index into the green, while IT & pharma stocks were the laggards. The Nifty50 closed 69 points higher at 17,222.

The India VIX dropped 3.5% to 22.61

The Nifty50’s monthly options expiring on March 31 have sizable positions at 17,500 and 17,200 call options and 17,000 and 17,200 put options. 

As per options data, the broad range for the Nifty50 is between 16,300 and 17,800 levels. Its immediate support is at 16,800 and resistance is at 17,500 levels.

Bank Nifty 

The Bank Nifty bounced sharply from the morning lows of 35,016 and ended nearly 1% higher. With both PSU and private bank index closing in green, the Bank Nifty rose 300 points to 35,710.

The Bank Nifty’s monthly options expiring on March 31 have sizable positions at 36,000 and 36,500 call options and 35,000 and 35,500 put options. 

As per options data, the broad range for the Bank Nifty is between 34,300 and 37,800 levels. Its immediate support is at 34,900 and resistance is at 36,400 levels.