F&O Morning Update for 7 January 2022

Global Markets Update

SGX Nifty is trading in the green, up by 45 points. Major Asian markets rose in Friday trade following losses in the previous trading session. Nikkei gained 0.7%, and Hang Seng climbed 0.6% 

European markets closed lower in the range of -1.7% to -0.8%. Following the tech sell-off in the previous session, US markets closed in the red. Nasdaq slipped 0.1%, making the fall close to 4% over the last two trading sessions, and Dow Jones fell 0.4%.

Stock Action

Long build-up was seen in NBCC, Delta Corp, Page Industries, Bank of Baroda and Tata Power. 

Short build-up was seen in Tata Communications, City Union Bank, Tech Mahindra, Persistent and Wipro. 

F&O stocks in ban

Stocks in ban: RBL Bank.

Stocks added: RBL Bank

Stocks out of ban: -

FII/DII Activity**

In the cash market, FIIs were net sellers of ₹1,926 crore while DIIs were net buyers of ₹800 crore. In the derivatives market, FIIs sold index futures worth ₹3,013 crore and bought index options worth ₹14,095 crore. Further, they sold stock futures worth ₹1,249 crore and bought stock options worth ₹51 crore.

Index Action

Nifty50

Nifty50 snapped its four days winning streak due to weak global cues. Sharp fall in Index heavyweights including HDFC twins, Reliance Industries and TCS dragged Nifty50 lower. It ended the day 179 points lower at 17,745. 

India VIX climbed 4.35% to 17.97. 

Nifty50’s monthly options expiring on January 27 have sizable positions at 18,000 and 18,500 call options and 17,000 and 17,500 put options. 

Nifty50’s weekly options expiring on January 13 have sizable positions at 18,000 and 17,800 call options and 17,500 and 17,000 put options. 

As per options data, the broad range for Nifty50 is between 16,400 and 18,600 levels. Its immediate support is at 17,400 and resistance is at 18,100 levels.

Bank Nifty 

Bank Nifty had a volatile expiry. It bounced from the day’s low to trade in the green, but selling dragged it back in the red towards the last hour. Bank Nifty slid 205 points to close at 37,490.

Bank Nifty50’s monthly options expiring on January 27 have sizable positions at 38,000 and 37,500 call options and 36,000 and 37,000 put options. 

Bank Nifty50’s weekly options expiring on January 13 have sizable positions at 38,000 and 37,500 call options and 37,000 and 37,500 put options. 

As per the options data, the broad range for Bank Nifty, is between 35,500 and 38,900 levels. Its immediate support is at 36,700 and resistance is at 38,100 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.