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F&O Morning Update for 4 October 2022

Asian Markets Update @ 7:30 am

SGX Nifty gained ground and was trading higher by 244 points at 7:30 am, indicating a positive start for the Nifty 50 today. In Japan, the Nikkei 225 rose 2.6%. Markets in Hong Kong and China are closed for a holiday.

Global Markets Update

U.S stocks started the October month on a strong note and closed Monday’s session higher. All the three major indexes climbed more than 2% in a single day after suffering a punishing September.

The Dow Jones jumped 2.7%, while the S&P 500 soared 2.6%. The tech-focused Nasdaq added 2.3%. The European markets closed higher in the range of 0.2% to 0.7%.


Index Action

Nifty 50 @ 16,887 📈▼ 207 (-1.2%)

Tracking weak global cues, the Nifty 50 gave up most of Friday's gains and fell below the 17,000-mark. The index tumbled more than 200 points and once again fell below its 200-DMA. Barring Pharma (+1.1%), all other major sectoral indices ended in the red, with Metal (-3.0%) and PSU Bank (-2.6%) declining the most.

Nifty 50’s options contracts expiring on 27 October are scattered and have sizable positions at 18,000 and 17,000 call options and 17,000 and 16,000 put options.

Nifty 50’s options contracts expiring on 6 October have sizable positions at 17,000 and 17,100 call options and 17,000 and 16,800 put options.

As per options data and OI analysis, the broad range for the Nifty 50 is between 16,200 and 17,800 levels. On the other hand, 16,700 and 17,200 are the critical levels to watch for the current week.

BANK NIFTY @ 38,029 📈▼ 602 (-1.5%)

After a gap-down start, the Bank Nifty index remained under pressure and fell more than 600 points. All the twelve stocks of the index ended lower, with AU Small Finance Bank (-4.0%) and Bank of Baroda (-3.2%) being the top losers.

Bank Nifty’s options contracts expiring on 27 October have sizable positions at 41,000 and 40,000 call options and 38,000 and 36,000 put options.

Bank Nifty’s options contracts expiring on 6 October have sizable positions at 39,000 and 38,500 call options and 37,000 and 37,500 put options.

As per options data and OI analysis, the broad range for the Bank Nifty is between 36,800 and 39,200 levels. On the other hand 37,500 and 38,600 are the critical levels to watch for the current week.


FII and DII Data**💰

In the cash market, FIIs bought shares worth ₹590 crore, while DIIs sold shares worth ₹423 crore. In the derivatives market, FIIs sold index futures worth ₹1,170 crore and bought index options worth ₹2,411 crore. Further, they sold stock futures worth ₹2,118 crore and sold stock options worth ₹157 crore.

India VIX

The India VIX, a gauge of the market's volatility in the near term, climbed 6.9% to 21.36.


Stock Action📊

Long build-up was seen in ONGC, Ipca Labs, Zydus Lifesciences, Indian Hotels and Cipla.

Short build-up was seen in Crompton Greaves, Eicher Motors, Rural Electrification Corporation (REC), GAIL and Ashok Leyland.


*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