Asian Markets Update @ 7:00 am
The SGX Nifty fell -0.2% or 45 points from its previous close, suggesting a negative start for the Nifty50 today. Major Asian markets are closed for New Year’s holiday.
Global Markets Update
U.S. markets closed lower on the last trading day of 2022, booking their worst performance since the financial crisis of 2008. With Friday’s losses, the S&P 500 declined 19% in 2022, while the Nasdaq Composite fell 33% and stands at the same level as July 2020. The Dow Jones fared the best of the three indexes and plunged 8%.
When Friday's closing bell rang, the Dow Jones slipped 0.2% and ended at 33,147, while S&P 500 declined 0.2% and closed the day at 3,839. The tech-focused Nasdaq Composite lost 0.1% and ended the day flat at 10,466.
Index Action
Nifty50
January Futures: 18,219 📉▼72 (-0.4%)
OI contracts: 2,12,751 (+1.2%)
The Nifty50 index witnessed profit booking on the last trading day of 2022 and closed nearly half a percent lower. However, the index settled last week (+1.6%) of December and the year 2022 (+4%) on a positive note.
Among major sectoral indices, PSU Bank(+1.5%) and Realty (+0.9%) were the top gainers, while FMCG (-0.7%) and Private Bank (-0.6%) were the top losers.
Nifty50’s options contracts expiring on 5 January have sizable positions at 18,200 and 18,300 call options and 18,000 and 18,200 put options.
As per options data and OI analysis, the broad range for the Nifty50 is between 17,500 and 18,500 levels. On the other hand, 17,900 and 18,300 are the critical levels to watch for the current week.
Bank Nifty
January Futures: 43,232 📉▼144 (-0.3%)
OI contracts: 86,810 (-1.4%)
After a gap-up start, the Bank Nifty index remained under pressure throughout the day and faced selling pressure around 43,500-mark. It fell more than half a percent and closed below the psychologically crucial 43,000 level. However, in the year 2022, the index remained a strong outperformer and closed 21% higher.
Among banking stocks, the advance-decline ratio was evenly split on December 30. IDFC First Bank (+3.6%) and Punjab National Bank (+1.9%) advanced the most, while ICICI Bank (-1.8%) and AU Small Finance Bank (-1.6%) were the laggards.
Bank Nifty’s options contracts expiring on 5 January have sizable positions at 43,000 and 43,500 call options and 43,000 and 42,500 put options.
As per options data and OI analysis, the broad range for the Bank Nifty is between 42,000 and 44,000 levels. On the other hand, 42,500 and 43,400 are the critical levels to watch for the current week.
FII and DII Data**💰
On the final trading day of 2022, the Foreign Institutional Investors (FIIs) sold shares worth ₹2,950 crore, while Domestic Institutional Investors (DIIs) purchased shares worth ₹2,266 crore in the cash market. In the derivatives market, FIIs sold index futures worth ₹1,309 crore and bought index options worth ₹5,333 crore. Further, they bought stock futures worth ₹393 crore and sold stock options worth ₹97 crore.
India VIX
The India VIX, which measures the implied volatility of Nifty50 options, climbed 0.3% to 14.86.
Stock Action📊
Long build-up was seen in NALCO, Birlasoft, Persistent Systems, Tata Steel and Delta Corp.
Short build-up was seen in Coforge, HDFC Ltd, Indiabulls Housing Finance, SBI Life and HDFC 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.