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F&O Morning Update for 5 July 2022

Global Markets Update

The SGX Nifty traded higher by 40 points at 7 am India time, signalling a positive start for the Nifty50 today. Major Asian markets are also trading in the green. In Japan, the Nikkei advanced 0.9%, while Hong Kong’s Hang Seng index climbed 1.2% at 7 am India time.

The US markets were closed for the public holiday on Monday. Meanwhile, the European markets closed the session on a mixed note in the range of -0.3% to +0.8%.


Stock Action

Long build-up was seen in Siemens, Hindustan Unilever, United Breweries, Britannia, ITC and Cummins India.

Short build-up was seen in AU Small Finance Bank, TCS, Firstsource Solutions, Tata Steel, Persistent Systems and Polycab.


FII/DII Activity**

In the cash market, FIIs were net sellers of ₹2,149 crore, while DIIs were net buyers of ₹1,688 crore. In the derivatives market, FIIs sold index futures worth ₹614 crore and bought index options worth ₹1,482 crore. Further, they sold stock futures worth ₹358 crore and sold stock options worth ₹105 crore.


Index Action

Nifty50

After a subdued start, the Nifty50 snapped its three-day losing streak and closed the session near the day's high. Led by gains in FMCG, banking and financial stocks, the Nifty50 ended the session at 15,835, up 0.5%.

The India VIX, which measures the expected volatility in the market, fell 1.3% to 20.97.

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

The Nifty50’s options contracts expiring on 7 July have sizable positions at 16,200 and 16,000 call options and 15,700 and 15,500 put options.

As per options data, the broad range for the Nifty50 is between 14,900 and 16,800 levels. Its immediate support is at 15,700 and resistance is at 16,000 levels.

Bank Nifty

The Bank Nifty started the session on a stronger note and closed in positive territory for the third consecutive day. Led by gains in heavyweights ICICI Bank, Axis Bank and SBI, the index outperformed the broader market space and logged gains of more than 1%. With eleven out of its 12 stocks closing in the green, the Bank Nifty climbed 401 points and closed the session at 33,940.

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 33,500 and 33,000 put options.

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

As per the options data, the broad range for the Bank Nifty is between 32,900 and 35,000 levels. Its immediate support is at 33,500 and resistance is at 34,200 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.

Categories: F&O