F&O Morning Update for 7 October 2022

Asian Markets Update @ 7:30 am 

SGX Nifty was trading lower by 34 points at 7:30 am, signalling a negative start for the Nifty 50 today. Major Asian markets were also trading lower. In Japan, the Nikkei 225 fell 0.4%, while Hong Kong's Hang Seng index slipped 0.9%.

Global Markets Update 

U.S stocks finished Thursday’s session firmly in the red, ahead of the September Jobs report, which will be released today. The report will highlight how the labour market fared in September, giving the U.S. Fed another information about its rate-hike campaign.   

The Dow Jones tumbled 1.1% to 29,926, while the S&P 500 declined 1% to 3,744. The technology-heavy Nasdaq slipped 0.6% to 11,073. The European markets ended yesterday’s session lower, in the range of 0.3% to 0.7%.

Index Action

Nifty 50 @ 17,331 📈▲ 57 (+0.3%)

After a gap-up opening, the Nifty 50 index climbed the 17,400 mark. However, the index trimmed most of its gains from the day's high and closed Thursday's session at 17,331, up 0.3%. Among major sectoral indices, Metal (+3.2%) and Media (+2.7%) advanced the most. FMCG (-0.4%) and Pharma (-0.3%) were the laggards. 

Nifty 50’s options contracts expiring on 27 October are scattered and have sizable positions at 18,000 and 17,500 call options and 16,000 and 17,000 put options. 

Nifty 50’s options contracts expiring on 13 October have sizable positions at 17,500 and 17,400 call options and 17,000 and 17,300 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, 17,000 and 17,600 are the critical levels to watch for the next week.

BANK NIFTY @  39,282 📈▲ 172 (+0.4%)

The Bank Nifty also started the session on a positive note and moved higher. However, the index faced selling pressure at higher levels in the second half and ended the session below day's open. Among stocks, both IDFC First Bank and ICICI Bank advanced more than 2%, while IndusInd Bank (-1.5%) and HDFC Bank (-1.1%) declined 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 37,500 put options. 

Bank Nifty’s options contracts expiring on 13 October have sizable positions at 39,500 and 40,000 call options and 38,000 and 38,500 put options. 

As per options data and OI analysis, the broad range for the Bank Nifty is between 37,500 and 40,800 levels. On the other hand, 38,500 and 40,200 are the critical levels to watch for the next week.

FII and DII Data**💰

In the cash market, FIIs bought shares worth ₹279 crore, while DIIs sold shares worth ₹43 crore. In the derivatives market, FIIs sold index futures worth ₹175 crore and bought index options worth ₹11,065 crore. Further, they bought stock futures worth ₹95 crore and sold stock options worth ₹111 crore.

India VIX 

The India VIX, a gauge of the market's volatility in the near term, slipped 1.2% to 19.32.

Stock Action📊

Long build-up was seen in India Cements, BHEL, United Breweries, Mphasis and Persistent Systems. 

Short build-up was seen in Biocon, SBI Cards, Colgate-Palmolive, Hindustan Unilever and Indigo.

*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.