Asian Markets Update @ 7:30 am
The SGX Nifty was trading lower by 65 points at 7:30 am, indicating a negative start for the Nifty50 today. Major Asian markets were also trading in the red. Nikkei 225 in Japan fell 1.6%, while Hong Kong’s Hang Seng index declined 1.0%.
Global Markets Update
U.S. markets finished sharply lower on Thursday as investors digested tough talk from the U.S. Federal Reserve. The U.S. central bank raised the key rate by 0.50% to 4.50% yesterday. The Fed projects the interest rates to reach 5.1% by 2023-end, which is higher than their September forecast of 4.75%.
The Dow Jones fell 2.2% to 33,202, while the S&P 500 dropped 2.4% to finish at 3,895. The tech-heavy Nasdaq tumbled 3.2% and closed the session at 10,810.
Index Action
Nifty50 @ 18,414 📉▼ 245 (-1.3%)
The Nifty50 index engulfed all its gains of the last three sessions and slipped below the 18,500-mark. The sell-off intensified towards the last hour of the trade, and the headline index witnessed its biggest single-day drop (more than 1%) after two months.
Nifty50’s options contracts expiring on 29 December have sizable positions at 19,000 and 18,800 call options and 18,000 and 18,500 put options.
Nifty50’s options contracts expiring on 22 December have sizable positions at 18,600 and 18,700 call options and 18,000 and 18,400 put options.
As per options data and OI analysis, the broad range for the Nifty50 is between 18,000 and 18,000 levels. On the other hand, 18,200 and 18,600 are the critical levels to watch for the current week.
Bank Nifty @ 43,498 📉▼ 550 (-1.2%)
The Bank Nifty also witnessed its first big sell-off after two months and ended the five-day winning streak. Except for Federal Bank (+0.8%) and Punjab National Bank (+0.08%), all the other ten stocks of the banking index closed in the red. Among the losers, Bank of Baroda (-3.7%) and HDFC Bank (-1.8%) were the top laggards.
Bank Nifty’s options contracts expiring on 29 December have sizable positions at 44,000 and 45,000 call options and 43,000 and 44,000 put options.
Bank Nifty’s options contracts expiring on 22 December have sizable positions at 44,000 and 44,500 call options and 42,500 and 43,000 put options.
As per options data and OI analysis, the broad range for the Bank Nifty is between 42,700 and 44,200 levels. On the other hand 43,200 and 43,800 are the critical levels to watch for the current week.
FII and DII Data**💰
In the cash market, FIIs were net sellers worth ₹710 crore and DIIs bought shares worth ₹260 crore. In the derivatives market, FIIs sold index futures worth ₹1,934 and bought index options worth ₹7,117 crore. Further, they sold stock futures worth ₹1,970 crore and sold stock options worth ₹19 crore.
India VIX
The India VIX, which measures the implied volatility of Nifty50 options climbed 6.5% to 13.73.
Stock Action📊
Long build-up was seen in Federal Bank, L&T Finance, Britannia, Coromandel and Gujarat Gas.
Short build-up was seen in IRCTC, Metropolis, Tech Mahindra, Titan and City union Bank.
Under F&O Ban: BHEL, Delta Corp, GNFC, Indiabulls Housing Finance, IRCTC and Punjab National Bank.
*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.