August 5, 2022

F&O Morning Update for 5 August 2022

Blog | F&O

Asian Markets Update @7 am 🕖

The SGX Nifty is trading in the green, up by 53 points, signalling a positive start for the Nifty50 today. Major Asian markets opened higher. In Japan, the Nikkei advanced 0.4%, while Hong Kong’s Hang Seng index climbed 0.3%.

Global Markets Update

The US markets ended mixed on Thursday as investors eye the monthly jobs data, which will be released later today. The Dow Jones fell 0.2%, while the tech-focused Nasdaq climbed 0.4%. The European markets closed flat to positive in the range of +0.03% to +0.6%.

Stock Action📊

Long build-up was seen in Lupin, Ipca Labs, Nippon Life, NMDC and PI Industries.

Short build-up was seen in Gujarat Gas, Tata Consumer, ICICI Lombard, Crompton Greaves and GAIL.

Key results today: ABFRL, Alkem Labs, Mahindra & Mahindra, NMDC, Petronet LNG, Pfizer, Raymond and Titan.

FII/DII Activity**

In the cash market, FIIs were net buyers of ₹1,474 crore, while DIIs were net sellers of ₹46 crore. In the derivatives market, FIIs sold index futures worth ₹829 crore and bought index options worth ₹1,129 crore. Further, they bought stock futures worth ₹701 crore and bought options worth ₹163 crore.

India VIX

The India VIX, a gauge of the market's volatility in the near term, climbed 4.3% to 19.26.

Index Action

Nifty50 @ 17,382📉 ▼-6 (-0.04%)

The Nifty50 ended Thursday's volatile session lower and halted a six-day winning streak, a day ahead of the RBI's interest rate announcement. Among sectoral indices, Pharma (+2.3%), IT (+1.2%) and Metals (+1.2%) surged the most, while PSU Bank (-1.7%) and Realty (-1.1%) remained under pressure.

The Nifty50’s options contracts expiring on 25 August have sizable positions at 18,000 and 17,500 call options and 16,500 and 17,000 put options.

The Nifty50’s options contracts expiring on 11 August have sizable positions at 17,500 and 17,600 call options and 17,000 and 17,300 put options.

As per options data, the broad range for the Nifty50 is between 16,500 and 18,000 levels. Its immediate support is at 17,200 and resistance is at 17,600 levels.

Bank Nifty @37,755📉▼-233 (-0.6%)

The Bank Nifty closed the choppy session on the weekly F&O expiry 0.6% lower. Except for AU Small Finance Bank (+4.4%), all the other eleven stocks of the index ended lower, with Bank of Baroda (-2.0%) and Bandhan Bank (-1.8%) being the top losers.

The Bank Nifty’s options contracts expiring on 25 August have sizable positions at 38,000 and 39,000 call options and 37,000 and 36,000 put options.

The Bank Nifty’s options contracts expiring on 11 August have sizable positions at 38,000 and 38,500 call options and 37,500 and 37,000 put options.

As per the options data, the broad range for the Bank Nifty is between 36,500 and 38,800 levels. Its immediate support is at 37,200 and resistance is at 38,200 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.