Asian Markets Update @ 7 am
Indian equities may start the day slightly lower on renewed concerns about the health of the regional banks in the US. The SGX Nifty is trading 0.3% lower, suggesting a negative start for the Nifty50 today. However, stocks in Asia have shrugged off the US jitters and are trading higher. Japan's Nikkei 225 and Hong Kong's Hang Seng Index are both up more than 0.5%.
Global Market Update
US stocks fell on Thursday despite positive inflation data showing a slowdown in wholesale inflation. Concerns about regional banks weighed on the market, with PacWest shares falling 22% after losing over $2bn in uninsured deposits.
The Dow Jones fell by 0.6%, marking its fourth consecutive decline. The S&P 500 also slid by 0.1%, its second loss in the last three sessions, while the Nasdaq rose 0.1%, achieving a second day of gains.
Index Action
Nifty50
May Futures @ 18,356 📈▲10 (+0.06%)
OI Contracts: 2,33,861 (+5.0%)
On the weekly expiry of F&O contracts, markets traded in a narrow range and closed almost flat. After an initial rally, the Nifty50 index encountered higher-level resistance and closed below 18,300.
Sectorally, Realty and FMCG both advanced by 0.4%. Nifty Pharma and Metal index slipped over 0.5%.
The Nifty50 options expiring on 18 May have significant positions at 18,300 and 18,500 calls and 18,300 and 18,200 puts.
According to options data and OI analysis, the Nifty50's long range for the 25th May expiry is between 18,000 and 18,600. On the other hand, 18,200 and 18,400 is the short-term range for this week.
Bank Nifty
May Futures @ 43,490 📈▲175 (+0.4%)
OI Contracts: 92,879 (+7.1%)
The Bank Nifty outperformed the Nifty50 and extended gains for yet another session. The banking index consolidated in a range of 400 points and closed the choppy session higher.
Among banking stocks, AU Small Finance Bank (+2.01%) and IndusInd Bank (+1.27%) advanced the most, while Federal Bank (-1.12%) and Kotak Mahindra Bank(-0.04%) witnessed selling pressure.
The Bank Nifty's options expiring on 18 May have significant positions at the 43,500 and 44,000 calls and 43,500 and 43,000 puts.
According to options data and OI analysis, Bank Nifty's range for the 25th May expiry is between 42,300 and 44,200. On the other hand, 43,000 and 43,600 is the short-term range for this week.
FII and DII Data💰
The Foreign Institutional Investors (FIIs) bought shares worth ₹837 crore, while Domestic Institutional Investors (DIIs) sold shares worth ₹200 crore in the cash market. In the derivatives market, FIIs sold index futures worth ₹669 crore and sold index options worth ₹4,112 crore. Further, they bought stock futures worth ₹748 crore and sold stock options worth ₹107 crore.
India VIX
The Volatility Index rose for the fifth consecutive day to 13.21. The India VIX has jumped more than 7% in the last five days, causing sharp swings in the market.
Stock Action📊
Long build-up was seen in Gujarat Gas, Adani Enterprises, Asian Paints, SBI Cards and Delta Corp.
Short build-up was seen in Dr. Reddy's, Larsen & Toubro, Hindalco, Indraprastha Gas and Divi's Labs.
Under F&O Ban: BHEL, Canara Bank, Punjab National Bank and Manappuram Finance.
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