F&O Morning Update for 31 March 2022

Global Markets Update

Amid mixed global cues, the SGX Nifty is trading in green, up by 28 points. Major Asian markets are also trading mixed, Japan’s Nikkei gained 0.1% (7 am), and Hong Kong’s Hang Seng index fell 0.3%(7 am).

European markets closed mixed in the range of -1.4% to +0.5%. U.S. markets snapped their four-day winning streak and ended lower. The Dow Jones fell 0.1%, while the NASDAQ dove 1.2%.

Stock Action

Long build-up was seen in SRF, Axis Bank, Hero MotoCorp, IDFC Bank and Bajaj Finserv. 

Short build-up was seen in ONGC, IOC, Wipro, Lupin and Amara Raja Batteries.

F&O stocks in ban

Stocks in ban: Vodafone-Idea

Stocks added: 

Stocks out of ban: PVR and Sun TV

FII/DII Activity**

In the cash market, FIIs were net buyers of ₹1,357 crore, while DIIs were net buyers of ₹1,216 crore. In the derivatives market, FIIs bought index futures worth ₹1,082 crore and bought index options worth ₹1,300 crore. Further, they bought stock futures worth ₹1,657 crore and sold stock options worth ₹6 crore.

Index Action

Nifty50

With hopes of a breakthrough in Russia-Ukraine peace talks and positive cues from the Asian markets, the Nifty50 rallied for the third day before the expiry of the March derivatives contract. Gains in heavyweights like Reliance, Infosys and HDFC twins helped the index cross the 17,500 mark during the day and post a 1% jump. The Nifty50 ended 172 points higher at 17,498.

The India VIX dropped 3.2% to 20.61

The Nifty50’s monthly options expiring on March 31 have sizable positions at 17,500 and 17,600 call options and 17,500 and 17,200 put options. 

As per options data, the broad range for the Nifty50 is between 16,600 and 18,200 levels. Its immediate support is at 17,200 and resistance is at 17,700 levels.

Bank Nifty 

The Bank Nifty rallied steadily and closed firmly in the green following an initial dip. With Private and PSU Bank indexes posting gains of more than 1%, the Bank Nifty jumped 486 points to 36,334.

The Bank Nifty’s monthly options expiring on March 31 have sizable positions at 37,000 and 36,500 call options and 36,000 and 35,000 put options. 

As per the options data, the broad range for Bank Nifty is between 34,900 and 37,800 levels. Its immediate support is at 35,700 and resistance is at 37,000 levels.