F&O Morning Update for 6 January 2023

Asian Markets Update @ 8:30 am

The SGX Nifty was trading flat +0.05% or 9 points from its previous close, suggesting a flat start for the Nifty50 today. Major Asian markets are also trading in the green. Nikkei 225 in Japan rose 0.6%, while Hong Kong's Hang Seng index gained 0.7%.

Global Markets Update

US markets closed Thursday’s session on a negative note as strong jobs data dashes hopes for a swift change to aggressive Fed policy.

The Dow Jones dropped -1.0% to close at 32,930. The S&P 500 dropped 0.7% and ended the day at 3,808. The tech-focused Nasdaq Composite dropped -1.4% and closed at 10,305.

Index Action

Nifty50
January Futures: 18,066 📉▼37 (-0.2%)

The Nifty50 index erased gains of the last four days and closed the volatile session 0.2% lower near the day’s low. The index remained under the grip of bears throughout the session and took support at 18,000-mark. 

All the major sectoral indices saw a pullback during the end of the session which was led by FMCG and Autos

Nifty50’s options contracts expiring on 12 January have sizable positions at 18,000 and 18,200 call options and 18,000 and 17,700 put options. 

As per options data and OI analysis, the broad range for the Nifty50 is between 17,400 and 18,500 levels. On the other hand, 17,700 and 18,200 are the critical levels to watch for the current week.

Bank Nifty
January Futures: 42,770 📉▼365 (-0.8%)

After a flat start, the Bank Nifty index came under selling pressure and faced the hurdle around 42,500-mark. The index fell more than 800 points from the day's high and closed Thursday's session 0.8% lower.

All the twelve stocks of the banking index closed in red, with ICICI Bank (-2.2%) and AU Bank (-1.2%) being the top laggards. 

Bank Nifty’s options contracts expiring on 12 January have sizable positions at 43,500 and 43,000 call options and 43,000 and 42,000 put options.

As per options data and OI analysis, the broad range for the Bank Nifty is between 41,700 and 43,800 levels. On the other hand, 42,200 and 43,200 are the critical levels to watch for the current week.

FII and DII Data**💰

The Foreign Institutional Investors (FIIs) sold shares worth ₹1,449 crore, while Domestic  Institutional Investors (DIIs) sold shares worth ₹194 crore in the cash market. In the derivatives market, FIIs bought index futures worth ₹1,478 crore and bought index options worth ₹11,150 crore. Further, they bought stock futures worth ₹543 crore and sold stock options worth ₹129 crore.

India VIX 

The India VIX, which measures the implied volatility of Nifty50 options, fell 1.4% to 14.98. 

Stock Action📊

Long build-up was seen in Apollo Tyres, Godrej Consumer Products, Petronet LNG, MRF and Havells.

Short build-up was seen in Bajaj Finance, Info Edge, Trent, Titan and ICICI Bank.

*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.