X

F&O Morning Update for 4 July 2022

Global Markets Update

The SGX Nifty is trading lower by 15 points, signalling a flat start for the Nifty50 today. Major Asian markets are trading mixed. In Japan, the Nikkei advanced 0.2%, while Hong Kong’s Hang Seng index declined 1.4% at 7 am India time.

On Friday, the US markets reversed their recent declines and closed higher. The Dow Jones closed 1% higher, while the tech-heavy Nasdaq gained 0.9%. The European markets ended on a mixed note on Friday in the range of -0.01% to +0.2%.


Stock Action

Long build-up was seen in Manappuram Finance, Havells India, Marico, Bosch, Abbott India.

Short build-up was seen in ONGC, Reliance Industries, Bank Of Baroda, Persistent, L&T Technology Services.


FII/DII Activity**

In the cash market, FIIs were net sellers of ₹2,324 crore, while DIIs were net buyers of ₹1,310 crore. In the derivatives market, FIIs sold index futures worth ₹542 crore and bought index options worth ₹400 crore. Further, they sold stock futures worth ₹317 crore and sold stock options worth ₹249 crore.


Index Action

Nifty50

On Friday, The Nifty50 recouped its early losses and closed the first session of the July F&O series almost flat. Sectorally, oil & gas and energy stocks declined, while FMCG and realty advanced. The Nifty50 ended the session 0.1% lower to close at 15,752.

The India VIX, which indicates the degree of volatility traders expect in the coming days, slipped 2.7% to 21.25.

The Nifty50’s options contracts expiring on 28 July are scattered and have sizable positions at 17,000 and 16,500 call options and 15,000 and 15,500 put options.

The Nifty50’s options contracts expiring on 7 July have sizable positions at 15,800 and 16,000 call options and 15,500 and 15,600 put options.

As per options data, the broad range for the Nifty50 is between 15,000 and 16,700 levels. Its immediate support is at 15,600 and resistance is at 16,000 levels.

Bank Nifty

The Bank Nifty outperformed the Nifty50 for the second consecutive day and closed 0.3% higher. With eight of its 12 bank stocks closing in the green, the Nifty Bank added 114 points and closed the session at 33,539.

The Bank Nifty’s options contracts expiring on 28 July are scattered and have sizable positions at 36,000 and 35,000 call options and 33,000 and 33,500 put options.

The Bank Nifty’s options contracts expiring on 7 July have sizable positions at 34,000 and 33,500 call options and 33,000 and 32,500 put options.

As per the options data, the broad range for the Bank Nifty is between 32,600 and 34,800 levels. Its immediate support is at 33,100 and resistance is at 33,800 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.

Categories: F&O