F&O Morning Update for 31 October 2022

Asian Markets Update @ 7:30 am 

The SGX Nifty was trading higher by 163 points at 7:30 am, indicating a positive start for the Nifty50 today. Major Asian markets were trading mixed. The Nikkei 225 in Japan rose 1.7%, while Hong Kong’s Hang Seng index lost 0.1%.

Global Markets Update 

U.S. stocks rallied and closed sharply higher on Friday after Apple’s upbeat earnings managed to offset sales warning from e-commerce giant Amazon.

The Dow Jones bounced 2.5% to 32,861, while the S&P 500 advanced 2.4% to 3,901. The tech-heavy Nasdaq climbed 2.8% and closed the session at 11,102. The European markets closed Friday’s session on a mixed note, in the range of +0.2% and -0.3%.

Index Action

Nifty50 @ 17,786 📈▲ 49 (+0.2%)

Amid positive global cues and FIIs turning net buyers in the week, the Nifty50 index concluded the truncated week on a positive note. In the current move towards 17,800, the outperformance was seen in PSU Banks, Auto and Oil & Gas stocks.

Nifty50’s options contracts expiring on 3 November have sizable positions at 18,000 and 17,800 call options and 17,700 and 17,600 put options. 

As per options data and OI analysis, the broad range for the Nifty50 is between 17,000 and 18,600 levels. On the other hand, 17,500 and 18,200 are the critical levels to watch for next week.

Bank Nifty @ 40,990 📉▼ 308 (-0.7%)

After a strong outperformance in October series, the banking index witnessed profit booking on Friday and closed lower. Among stocks, Kotak Mahindra Bank (+1.0%) and IndusInd Bank (+0.3%) were the top gainers, while Federal Bank(-2.5%) and Bandhan Bank(-1.9%) cracked the most.

Bank Nifty’s options contracts expiring on 3 November 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 40,500 and 42,000 levels. On the other hand 40,800 and 41,600 are the critical levels to watch for the next week.

FII and DII Data**💰

In the cash market, FIIs bought shares worth ₹1,568 crore, while DIIs sold shares worth ₹613 crore. In the derivatives market, FIIs sold index futures worth ₹623 crore and bought index options worth ₹4,246 crore. Further, they sold stock futures worth ₹790 and bought stock options worth ₹144 crore.

India VIX 

The India VIX, which measures the implied volatility of Nifty50 options declined 4.1% to 15.92.

Stock Action📊

Long build-up was seen in Honeywell Automation, Bosch, Cummins India, Ashok Leyland and MRF.

Short build-up was seen in Page Industries, Balrampur Chini, Crompton Greaves, Whirlpool and SBI Cards.

Key results today: Bharti Airtel, Larsen & Toubro and Tata Steel.

*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.