Asian Markets Update 7 am
Indian equities may start the day higher, as the SGX Nifty indicates. The futures contract on the Singapore Exchange is trading 81 (+0.4%) points lower. Its Asian peers are trading in the green. The Nikkei 225 advanced 1.3%, while Hong Kong's Hang Seng index gained 0.2%.
US market update
US markets ended in green near the day's high points after a strong May jobs report. Dow Jones registered its biggest single-day gain and ended 2.1% higher, whereas NASDAQ rose 1.0%.
Index Action
Nifty50
June Futures @ 18,633 📈▲63 (+0.3%)
OI Contracts: 1,81,632 (+2.8%)
The Nifty50 rebounded after experiencing a decline for two consecutive days. However, the index struggled to extend its initial gains as it worked to determine a clear direction near the 18,600 level. The rise in Metal and Auto stocks contributed to the index's upward movement, but a decline in IT stocks limited its progress before the weekend break.
The index encounters a congestion zone between 18,600 and 18,700, which must be surpassed for further upward momentum. Nevertheless, the persistently low levels of VIX, which have historically been associated with temporary market peaks, may hinder the short term.
The Nifty50 options expiring on 8 June have significant positions at 18,600 and 18,700 calls and 18,500 and 18,600 puts.
According to options data and OI analysis, the Nifty50's range for the 29th June expiry is between 18,100 and 18,900 levels. On the other hand, 18,300 and 18,700 are the immediate support and resistance levels for this week.
Bank Nifty
June Futures @ 44,074 📈▲126 (+0.2%)
OI Contracts: 88,924 (+2.1%)
The Bank Nifty once again took support at its 20 DMA near 43,800 but failed to close above the 44,000 mark. However, the breadth of the banking index stocks was positive, with 10 out of 12 stocks ending in the green. Led by gains in PSU banks, the index ended one-third of a per cent higher.
Punjab National Bank (+1.1%) and Bank of Baroda (+1.0%) were the top gainers among banking stocks. Bandhan Bank (-1.1%) and IndusInd Bank (-0.1%) were the laggards.
The Bank Nifty's options expiring on 8 June have significant positions at the 44,000 and 44,500 calls and 44,000 and 43,000 puts.
According to options data and OI analysis, Bank Nifty's range for the 29th June expiry is between 42,500 and 45,000. On the other hand, 43,500 and 44,500 are this week's immediate support and resistance levels.
FII and DII Data💰
In the cash market, the Foreign Institutional Investors (FIIs) sold shares worth ₹658 crore, while the Domestic Institutional Investors (DIIs) bought shares worth ₹581 crore. In the derivatives market, FIIs bought index futures worth ₹475 crore and bought index options worth ₹14,246 crore. Further, they bought stock futures worth ₹2,546 crore and sold stock options worth ₹166 crore.
India VIX
The volatility index declined 4.0% to 11.13.
Stock Action📊
Long build-up was seen in DLF, Godrej Properties, PFC, Hindalco and Tata Communications.
Short build-up was seen in Indraprastha Gas, Biocon, Gujarat Gas, Adani Enterprises, Bata India and GAIL.
*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: nseindia.com. Cash market figures are provisional.