Asian Markets Update @ 7:30 am
The SGX Nifty was trading higher by 25 points at 7:30 am, indicating a flat to a positive start for the Nifty50 today. Major Asian markets were trading mixed. The Nikkei 225 gained 0.7% in Japan, while Hong Kong’s Hang Seng index slipped 0.6%.
Global Markets Update
U.S. stocks continued their winning streak for a second straight session on Tuesday. Investor confidence rose on Tuesday after Goldman Sachs and Lockheed Martin posted better-than-expected earnings reports for the third quarter.
The Dow Jones advanced 1.1% to 30,523, while S&P 500 also added 1.1% and closed at 3,719. The technology-heavy Nasdaq Composite climbed 0.9% to 10,772. The European markets closed yesterday’s session higher, in the range of 0.2% to 0.9%.
Index Action
Nifty50 @ 17,486 ▲ 175 (+1.0%)
After a gap-up start, the Nifty50 further strengthened its gains and closed in the green for the third day in a row. The headline index surged over 1% and closed just shy of the psychologically crucial 17,500 mark.
All the major sectoral indices closed in the green, with PSU Banks ( +3.9%), Realty (+1.7%) and Auto (+1.3%) shining the most.
Nifty50’s options contracts expiring on 27 October have sizable positions at 18,000 and 17,500 call options and 16,500 and 17,000 put options.
Nifty50’s options contracts expiring on 20 October have sizable positions at 17,500 and 17,700 call options and 17,400 and 17,500 put options.
As per options data and OI analysis, the broad range for the Nifty50 is between 16,500 and 18,000 levels. On the other hand, 17,300 and 17,700 are the critical levels to watch for the current week.
Bank Nifty @ 40,318 📈▲ 398 (+1.0%)
The Bank Nifty continued its upward momentum and reclaimed the 40,000 mark, led by strong gains in PSU Banks. In the past three days, the Nifty PSU Bank index has surged more than 7%, compared to a nearly 2% rise in the Nifty50 index.
Except for HDFC Bank (-0.1%), all the eleven stocks of the banking index closed in the green, with Punjab National Bank (+5.2%) and SBI (+3.4%) advancing the most.
Bank Nifty’s options contracts expiring on 27 October have sizable positions at 40,500 and 41,000 call options and 38,000 and 39,000 put options.
Bank Nifty’s options contracts expiring on 20 October have sizable positions at 40,500 and 41,000 call options and 39,000 and 39,500 put options.
As per options data and OI analysis, the broad range for the Bank Nifty is between 39,000 and 41,300 levels. On the other hand 39,800 and 40,700 are the critical levels to watch for the current week.
FII and DII Data**💰
In the cash market, FIIs sold shares worth ₹153 crore, while DIIs bought shares worth ₹2,084 crore. In the derivatives market, FIIs bought index futures worth ₹2,421 crore and sold index options worth ₹1,396 crore. Further, they bought stock futures worth ₹595 crore and sold stock options worth ₹55 crore.
India VIX
The India VIX, which measures the implied volatility of Nifty50 options collapsed 5.2% to 17.45.
Stock Action📊
Long build-up was seen in BHEL, Indiamart, TVS Motor, Honeywell Automation and Tata Communications.
Short build-up was seen in Samvardhana Motherson, Navin Fluorine, HDFC Ltd, GSPL and Firstsource Solutions.
Key results today: AU Small Finance Bank, Havells India, HDFC AMC, IndusInd Bank, Navin Fluorine, Nestle India, and Persistent Systems.
Under F&O Ban: BHEL, Delta Corp, India Cements, Indiabulls Housing Finance and Zee Entertainment.
*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.