F&O Morning Update for 8 September 2022

Asian Markets Update @ 8 am 🕗

SGX NIFTY surged 0.7% higher than its previous close, signalling a positive start for the NIFTY 50 today. Major Asian markets traded mixed. In Japan, the Nikkei 225 rose 2.0%, while Hong Kong's Hang Seng index declined 0.5%.

Global Markets Update 

U.S stocks closed sharply higher on Wednesday, with both Dow Jones and Nasdaq posting their best single-day gain in over a month. The Dow Jones closed 1.4% higher, while the tech-heavy Nasdaq surged 2.1% and snapped a seven-day streak of declines. The European markets closed mixed in the range of -0.8% to +0.3%.

Index Action

NIFTY 50 @ 17,624 📉 ▼ 31 (-0.1%)

Amid weak global cues, NIFTY 50 opened lower near the 17,500 mark. However, the index pared the losses as the day progressed and closed the volatile session marginally lower.

Among sectors, Media (+1.4%) and Pharma (+0.7%) were the top gainers, while Auto (-1.1%) and Nifty Bank (-0.5%) were the top losers. 

NIFTY 50’s options contracts expiring on 29 September have sizable positions at 18,000 and 17,500 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 17,600 put options. 

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

BANK NIFTY @39,455 📉 ▼ 210 (-0.5%)

BANK NIFTY also started the session on a weak note and slipped to 39,200 levels. However, it marginally recovered from the day's low but failed to close above the 39,500 mark. Among stocks, Punjab National Bank (+1.0%) and Axis Bank (+0.7%) advanced the most, while Federal Bank (-2.0%) and IndusInd Bank (-1.7%) were the biggest 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 39,500 call options and 38,000 and 39,000 put options. 

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

FII and DII Data**

In the cash market, FIIs bought shares worth ₹758 crore, while DIIs sold shares worth ₹138 crore. In the derivatives market, FIIs sold index futures worth ₹71 crore and bought index options worth ₹2,027 crore. Further, they sold stock futures worth ₹3,117 crore and bought stock options worth ₹173 crore.

India VIX 

The India VIX, a gauge of the market's volatility in the near term, slipped 0.8% to 19.37. 

Stock Action📊

Long build-up was seen in Container Corporation of India, JK Cement, Ramco Cements, ACC and Firstsource Solutions .

Short build-up was seen in Persistent Systems, Birlasoft, Oracle Financial Services Software, Tata Motors and Indigo. 

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.