Trade setup for 01 June: Market rebounds from intraday low, 18,500 Expiry pivot?

Blog | F&O

Asian Markets Update 7 am

Indian equities may start the day lower, as the SGX Nifty indicates. The futures contract on the Singapore Exchange is trading 53 (-0.2%) points lower. Its Asian peers are trading in the green. The Nikkei 225 advanced 0.6%, while Hong Kong's Hang Seng index gained 0.3%.

US market update

US markets ended mixed retail, and tech stocks plunged, and investors await the outcome of the key vote on the debt ceiling bill. Dow Jones fell 0.%4 whereas NASDAQ rose 0.6%.

Index Action

June Futures @ 18,622 📉▼90 (-0.4%)
OI Contracts: 1,86,191 (-6.3%)

After a consecutive four-day upward trend, the Nifty50 closed in the red on the day before the weekly expiry. Following a negative start, the index descended below the significant level of 18,500. The index successfully filled the gap at that level and ultimately settled above that level. However, the overall performance resulted in a modest decline of half a per cent.

The Nifty50 options expiring on 1 June have significant positions at 18,600 and 18,700 calls and 18,500 and 18,400 puts.

According to options data and OI analysis, the Nifty50 range for the 1st June expiry is between 18,100 and 18,900. On the other hand, 18,400 and 18,700 are the immediate support and resistance levels for this week.

Bank Nifty
June Futures @ 44,128 📉▼308 (-0.6%)
OI Contracts: 84,168 (-0.4%)

Bank Nifty retraced from its record high levels and ended the day in the red. The banking index declined during the trading session, reaching as low as 43,800 points. However, it subsequently staged a rebound, recovering from the earlier losses and managed to close above the level of 44,100 points. This movement indicates a temporary pullback from the peak levels recently attained by Bank Nifty.

Among banking stocks, Kotak Mahindra Bank (+2.0%) and Punjab National Bank (+0.7%) were the top gainers. Axis Bank (-2.4%) and SBI (-2.1%) were the laggards.

The Bank Nifty's options expiring on 1 June have significant positions at the 44,500 and 45,000 calls and 44,000 and 43,500 puts.

According to options data and OI analysis, Bank Nifty's range for the 1st June expiry is between 42,900 and 45,300. On the other hand, 43,800 and 44,400 are this week's immediate support and resistance levels.

FII and DII Data💰

In the cash market, Foreign Institutional Investors (FIIs) bought shares worth ₹3,405 crore, while Domestic Institutional Investors (DIIs) sold shares worth ₹2,528 crore. In the derivatives market, FIIs sold index futures worth ₹2,026 crore and bought index options worth ₹15,795 crore. Further, they sold stock futures worth ₹2,113 crore and sold stock options worth ₹140 crore.

India VIX

The volatility index declined 0.3% to 11.97.

Stock Action📊

Long build-up was seen in Torrent Pharma, Hindustan Aeronautics, Kotak Mahindra Bank, ABB and Bharti Airtel. 

Short build-up was seen in Indus Towers, Polycab, Reliance Industries, TCS and ONGC.

*In Futures and Options or F&O, long build-up means an increase in Open Interest (OI)

long with an increase in price, and short build-up means an increase in Open Interest

(OI) along with a decrease in price.

**Source: Cash market figures are provisional. 



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