F&O Morning Update for 7 April 2022

Wall Post: F&O Morning Update for 7 April 2022

Global Markets Update

The global markets are trading lower after the U.S. Federal Reserve released minutes from its last meeting suggesting aggressive rate hikes and shrinking its balance sheet by $95 billion a month. Mirroring Wall Street's losing streak, the SGX Nifty is trading in the red, down by 103 points. Major Asian markets are also trading lower. Japan's Nikkei fell 1.9% lower (7 am), and Hong Kong's Hang Seng dropped 0.6% lower (7 am).

European markets ended lower in the range of -2.2% to -0.3%. U.S markets tumbled and closed lower for the second consecutive day. The Dow Jones fell 0.4%, and NASDAQ fell 2.2%.

Stock Action

Long build-up was seen in Torrent Power, Coal India, ABFRL, Indian Hotels and NTPC.

Short build-up was seen in Tata Motors, IRCTC, IGL, Mphasis and TCS.

F&O stocks in ban

Stocks in ban: 

Stocks added: 

Stocks out of ban: 

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹2,279 crore, while DIIs were net buyers of ₹622 crore. In the derivatives market, FIIs sold index futures worth ₹126 crore and sold index options worth ₹2,320 crore. Further, they sold stock futures worth ₹1,803 crore and bought stock options worth ₹102 crore.

Index Action

Nifty50

Amid weak global cues, the Nifty50 closed lower for the second consecutive day. A sharp fall in shares of the HDFC group dragged the index lower, while metal and power stocks lent support. The Nifty50 dropped 149 points to 17,807.

The India VIX climbed 2.9% to 19.02.

The Nifty50’s monthly options expiring on April 28 are scattered and have sizable positions at 18,000 and 19,000 call options and 17,500 and 17,000 put options. 

The Nifty50’s weekly options expiring on April 7 have sizable positions at 18,000 and 17,900 call options and 17,800 and 17,500 put options. 

As per options data, the broad range for Nifty50 is between 17,000 and 18,800 levels. Its immediate support is at 17,600 and resistance is at 18,200 levels.

Bank Nifty 

The Bank Nifty fell more than 1% and took support near 37,500 levels. With a decline in the private heavyweights like HDFC Bank, Kota Mahindra Bank and Axis Bank, the Bank Nifty dropped 435 points to 37,632.

The Bank Nifty’s monthly options expiring on April 28 are scattered and have sizable positions at 38,500 and 38,000 call options and 37,000 and 36,000 put options. 

The Bank Nifty’s monthly options expiring on April 7 have sizable positions at 38,000 and 39,000 call options and 37,500 and 37,000 put options. 

As per the options data, the broad range for Bank Nifty is between 36,500 and 39,500 levels. Its immediate support is at 37,200 and resistance is at 38,400 levels.