F&O Morning Update for 7 September 2022

Asian Markets Update @ 8 am 🕗

SGX NIFTY is trading lower by 201 points, signalling a negative start for the NIFTY 50 today. Major Asian markets are also trading lower. In Japan, the Nikkei 225 fell 0.8%, while Hong Kong’s Hang Seng index slipped 1.8%.

Global Markets Update 

U.S markets closed Tuesday's choppy session lower as investors remained on edge ahead of the U.S Federal Reserve's next policy move later this month. The Dow Jones declined 0.5%, while the tech-heavy Nasdaq tumbled 0.7%. European markets closed higher in the range of +0.1% to +0.8%.

Index Action

NIFTY 50 @ 17,655 📉 ▼ 10 (-0.06%)

After a volatile first half, NIFTY 50 ended Tuesday's session with marginal cuts and closed in the red. Among sectors, Metal (+1.3%) and Oil & Gas (+1.1%) were the top gainers, while FMCG (-0.5%) and Media (-0.4%) were the top losers. 

NIFTY 50’s options contracts expiring on 29 September have sizable positions at 19,000 and 18,000 call options and 16,000 and 16,500 put options. 

NIFTY 50’s options contracts expiring on 8 September have sizable positions at 17,800 and 18,000 call options and 17,500 and 17,400 put options. 

As per options data, the broad range for the NIFTY 50 is between 16,900 and 18,200 levels. Its immediate support is at 17,400 and resistance is at 17,800 levels.

BANK NIFTY @39,666 📉 ▼ 139 (-0.35%)

After a gap-up opening, BANK NIFTY climbed the psychologically crucial 40,000 mark. However, the selling pressure at higher levels dragged the index down, and it ended the day in the red. Among stocks, Punjab National Bank (+4.2%) and ICICI Bank (+0.1%) were the top gainers, while Federal Bank (-1.9%) and IDFC First Bank (-1.7%) were the laggards. 

BANK NIFTY’s options contracts expiring on 29 September are scattered and have sizable positions at 40,000 and 41,000 call options and 38,000 and 39,000 put options. 

BANK NIFTY’s options contracts expiring on 8 September have sizable positions at 40,000 and 41,500 call options and 38,000 and 39,000 put options. 

As per the options data, the broad range for the BANK NIFTY is between 38,200 and 40,800 levels. Its immediate support is at 39,000 and resistance is at 40,200 levels. 

FII and DII Data**

In the cash market, FIIs bought shares worth ₹1,144 crore, while DIIs purchased shares worth ₹632 crore. In the derivatives market, FIIs sold index futures worth ₹1,005 crore and bought index options worth ₹3,039 crore. Further, they sold stock futures worth ₹488 crore and bought stock options worth ₹96 crore.

India VIX 

The India VIX, a gauge of the market's volatility in the near term, slipped 0.6% to 19.53. 

Stock Action📊

Long build-up was seen in Power Finance Corporation, Apollo Tyres, ACC, Torrent Power and Tata Power. 

Short build-up was seen in Syngene International, Oracle Financial Services Software, Torrent Pharma, Britannia and PI Industries. 

Under F&O Ban: Delta Corp.

*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.