Asian Markets Update @ 7:30 am
The SGX Nifty was trading higher by 99 points at 7:30 am, indicating a positive start for the Nifty50 today. Major Asian markets were also trading in the green. Nikkei 225 in Japan rose 0.3%, while Hong Kong’s Hang Seng index advanced 2.4%.
Global Markets Update
U.S. stocks rallied on Wednesday as strong earnings from Nike and FedEx, along with a rise in U.S. consumer confidence, lifted the sentiment.
The Dow Jones was up 1.6% and finished at 33,376, while S&P 500 advanced 1.4% and ended the day at 3,878. The tech-heavy Nasdaq Composite rose 1.5% and closed at 10,709.
Index Action
Nifty50 @ 18,199 📉▼ 186 (-1.0%)
Domestic equities came under pressure and declined for the second day in a row amid renewed fears of COVID cases and the worsening situation in China. Barring Pharma (+2.3%) and IT (+0.5%), all the major sectors ended with deep cuts. PSU Banks (-2.8%) and Metal (-2.3%) were the prominent losers.
Nifty50’s options contracts expiring on 29 December have sizable positions at 19,000 and 18,500 call options and 18,000 and 18,300 put options.
Nifty50’s options contracts expiring on 22 December have sizable positions at 18,400 and 18,500 call options and 18,200 and 18,000 put options.
As per options data and OI analysis, the broad range for the Nifty50 is between 17,800 and 18,600 levels. On the other hand, 18,000 and 18,400 are the critical levels to watch for the current week.
Bank Nifty @ 42,617 📉▼ 741 (-1.7%)
Despite opening higher than Tuesday's close, the Bank Nifty index witnessed heavy selling pressure and tumbled more than 1,200 points from the day's high. The 12-pack index slipped below the psychologically crucial 43,000-mark and closed in the red for a second consecutive day.
All the twelve stocks of the banking index closed in the red. Punjab National Bank (-4.3%) and IDFC First Bank (-4.0%) declined the most.
Bank Nifty’s options contracts expiring on 29 December have sizable positions at 43,000 and 43,500 call options and 43,000 and 42,000 put options.
Bank Nifty’s options contracts expiring on 22 December have sizable positions at 43,300 and 43,500 call options and 42,500 and 42,000 put options.
As per options data and OI analysis, the broad range for the Bank Nifty is between 42,000 and 43,500 levels. On the other hand, 42,400 and 43,000 are the critical levels to watch for the current week.
FII and DII Data**💰
The Foreign Institutional Investors (FIIs) sold shares worth ₹1,119 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹1,757 crore in the cash market. In the derivatives market, FIIs sold index futures worth ₹585 crore and bought index options worth ₹3,739 crore. Further, they bought stock futures worth ₹201 crore and bought stock options worth ₹94 crore.
India VIX
The India VIX, which measures the implied volatility of Nifty50 options, zoomed 12.9% to 15.56. The volatility index rebounded from the lower levels and closed above 15 for the first time since mid-November.
Stock Action📊
Long build-up was seen in Torrent Pharma, Ipca Labs, Glenmark Pharma, Cipla and Dr. Lal PathLabs.
Short build-up was seen in LIC Housing Finance, Max Financial Services, City Union Bank, Dixon Technologies and BHEL.
Under F&O Ban: GNFC, Indiabulls Housing Finance and IRCTC.
*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.
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