F&O Morning Update for 6 October 2022

Asian Markets Update @ 7:30 am 

SGX Nifty was trading higher by 120 points against Tuesday's close, indicating a positive start for the Nifty 50 today. In Japan, the Nikkei 225 rose 0.6%, while Hong Kong's Hang Seng index dipped 0.3%.

Global Markets Update 

U.S. markets closed lower on Wednesday and snapped a two-day rally. The Dow Jones fell 0.1%, while the S&P 500 slipped 0.2%. The tech-focused Nasdaq declined 0.2%. The European markets closed lower in the range of 0.4% to 1.2%.

Index Action

Nifty 50 @ 17,274 📈▲ 386 (+2.2%)

Nifty 50 bounced more than 2% on Tuesday amid positive trends in the global equity markets. All the major sectoral indices ended in the green, with Metal (+3.1%) and PSU Bank (+3.0%) advancing 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 16,000 and 16,500 put options. 

Nifty 50’s options contracts expiring on 6 October have sizable positions at 17,500 and 17,600 call options and 17,000 and 17,200 put options. 

As per options data and OI analysis, the broad range for the Nifty 50 is between 16,400 and 18,100 levels. On the other hand, 16,900 and 17,500 are the critical levels to watch for the current week.

BANK NIFTY @  39,110 📈▲ 1,080 (+2.8%)

The Bank Nifty opened higher and maintained its opening gains throughout the day. Strength in heavyweight banking stocks pushed the index higher, and it closed Tuesday's session above 39,100-mark. All the twelve stocks of the index closed in the green, with IDFC First Bank (+7.8%) and IndusInd Bank (+5.4%) soaring the most. 

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 40,000 call options and 37,000 and 38,000 put options. 

As per options data and OI analysis, the broad range for the Bank Nifty is between 37,600 and 40,500 levels. On the other hand 38,500 and 39,600 are the critical levels to watch for the current week.

FII and DII Data**💰

In the cash market, both FIIs and DIIs turned net buyers on Tuesday. The FIIs bought shares worth ₹1,344 crore, while DIIs purchased shares worth ₹945 crore. In the derivatives market, FIIs bought index futures worth ₹3,090 crore and bought index options worth ₹6,246 crore. Further, they bought stock futures worth ₹2,180 crore and bought stock options worth ₹46 crore.

India VIX 

The India VIX, a gauge of the market's volatility in the near term, slipped 8.4% to 19.57.

Stock Action📊

Long build-up was seen in IDFC First Bank, Delta Corp, Zee Entertainment, Cummins India and Trent.

Short build-up was seen in Gujarat State Petronet (GSPL), Dabur, Marico, Power Grid and PVR

*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.