Asian Markets Update @ 7:30 am
The SGX Nifty was trading lower by 79 points at 7:30 am, suggesting a negative start for the Nifty50 today. Major Asian markets are trading mixed. Nikkei 225 in Japan fell 0.5%, while Hong Kong's Hang Seng index gained 2.3%.
Global Markets Update
U.S. stocks closed mixed on Tuesday after Wall Street returned from a three-day Christmas weekend. Tesla was the day's biggest mover, as it tumbled more than 11% amid reports of a reduced production schedule at its Shanghai factory.
The Dow Jones rose 0.1% to finish at 33,241, while S&P 500 fell 0.4% and closed the day at 3,829. With heavyweights Apple, Amazon and Alphabet declining between 1% to 2%, the tech-heavy Nasdaq Composite was down 1.4% and ended the day at 10,353.
Index Action
Nifty50
January Futures: 18,256 📈▲ 121 (+0.6%)
OI contracts: 1,14,416 (+31%)
The Nifty50 index continued the positive momentum for the second day as reports of China further easing its pandemic-related restrictions boosted sentiment.
After initial bouts of volatility, the index registered gains of 0.6% and closed above the 18,100 mark. Except for FMCG (-0.4%), all the sectors participated in the rally. Metal index soared 4% and inched closer to its 52-week high, while Media and Realty advanced more than one per cent, respectively.
Nifty50’s options contracts expiring on 29 December have sizable positions at 18,200 and 18,300 call options and 18,000 and 17,800 put options.
As per options data and OI analysis, the broad range for the Nifty50 is between 17,400 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: 43,100 📈▲ 248 (+0.5%)
OI contracts: 53,061 (+14%)
The Bank Nifty index rebounded from the day's low and ended with gains for the second straight day in a row. For this week's expiry, bulls will face the first hurdle at 43,000, as the strike holds the second-highest open interest build-up on the call side.
All the twelve stocks of the banking index participated in the rally and closed in the green. Federal Bank (+1.6%) and Bandhan Bank (+1.3%) advanced for the second day in a row and topped the charts.
Bank Nifty’s options contracts expiring on 29 December have sizable positions at 43,000 and 44,000 call options and 42,000 and 41,500 put options.
As per options data and OI analysis, the broad range for the Bank Nifty is between 42,000 and 43,600 levels. On the other hand, 42,400 and 43,200 are the critical levels to watch for the next week.
FII and DII Data**💰
The Foreign Institutional Investors (FIIs) sold shares worth ₹867 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹621 crore in the cash market. In the derivatives market, FIIs bought index futures worth ₹43 crore and sold index options worth ₹3,858 crore. Further, they bought stock futures worth ₹601 crore and sold stock options worth ₹19 crore.
India VIX
The India VIX, which measures the implied volatility of Nifty50 options, fell 4.0% to 15.29.
Stock Action📊
Long build-up was seen in Indiabulls Housing Finance, Hindalco, Jindal Steel and Power, Shriram Finance and Tata Steel.
Short build-up was seen in Laurus Labs, Crompton, Trent, UPL and NTPC.
Under F&O Ban: Balrampur Chini Mills, Indiabulls Housing Finance 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.