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F&O Morning Update for 7 December 2021

Global Markets Update

SGX Nifty is trading in the green, up by 88 points. Major Asian markets are also trading in the green; Nikkei is up by 1.1% and Hang Seng is trading up by 1.3%

European markets closed in the green, up by nearly 1.5%. US markets also closed in the green. Dow Jones closed up by almost 1.9% and NASDAQ closed up by almost 1%.


Stock Action

Long build-up was seen in stocks like Metropolis, BHEL and Zee Entertainment.

Short build-up was seen in stocks like Dalmia Bharat, GAIL, PVR, L&T Infotech and Syngene. International.


F&O stocks in ban

Stocks in ban: Indiabulls Housing Finance

Stocks added: -

Stocks out of ban: Vodafone Idea


FII/DII Activity**

In the cash market, FIIs were net sellers of ₹3,361 crore while DIIs were net buyers of ₹1,701 crore. In the derivatives market, FIIs sold index futures worth ₹1,155 crore and bought index options worth ₹3,510 crore. Further, they sold futures worth ₹790 crore and sold stock options worth ₹243 crore.


Index Action

Nifty50

Uncertainty around the Omicron variant and rising inflation worries kept the selling pressure on Nifty50 on Monday. It broke the psychologically important mark of 17,000 and closed near the day’s low. It closed 284 points lower at 16,912.

India VIX shot up again to 20.07.

Nifty50’s monthly options expiring on December 30 have sizable positions at 18,000 and 17,500 call options and 17,000 and 16,000 put options.

Nifty50’s weekly options expiring on December 9 have sizable positions at 17,500 and 17,300 call options and 16,900 and 16,500 put options. Further additions were seen at 17,100 call options and 16,900 put options.

As per the options data, the broad range of Nifty50 is between 16,150 and 18,200 levels. It has immediate support at 16,700 and resistance at 17,400 levels.

Bank Nifty

Bank Nifty also slid by nearly 1.3% and closed significantly below the 36,000. RBI’s Monetary Policy Committee (MPC) meeting began yesterday and the announcement from the rate setting panel on December 8 i.e. tomorrow will keep the focus on Bank Nifty. It closed 461 points lower at 35,735.

Bank Nifty’s monthly options expiring on December 30 have sizable positions at 37,500 and 37,000 call options and 34,000 and 35,000 put options.

Bank Nifty’s weekly options expiring on December 9 have sizable positions at 37,000 and 36,500 call options and 36,000 and 35,500 put options. Further additions were seen at 36,000 call options and 35,700 put options.

As per options data, the broad range of Bank Nifty is between 34,700 and 37,900 levels. It has immediate support at 35,200 and resistance at 36,600 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