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Trade setup for 07 June: Nifty50 is confined to a narrow range.

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 37 (+0.2%) points lower. Its Asian peers are trading mixed. The Nikkei 225 declined 1%, while Hong Kong's Hang Seng index gained 1.2%.

US market update

US markets recovered their losses and ended flat to positive as a regional banking and Tech stocks gained. Dow Jones rose 0.03% while NASDAQ advanced 0.3%.


Index Action

Nifty50
June Futures @ 18,683 📉▼12 (-0.07%)
OI Contracts: 1,75,582 (-4.1%)

The Nifty50 recovered from its earlier losses, displaying a significant rebound in the final hour of trading. The index finally closed the session with a marginal positive bias, making this the third consecutive positive closing. Factors such as renewed buying interest from Foreign Institutional Investors (FIIs), the weekly expiry of FINNIFTY contracts, and optimism surrounding the Reserve Bank of India's announcement scheduled for tomorrow all drove the late surge in the index.

The Nifty50 options expiring on 8 June have significant positions at 18,600 and 18,800 calls and 18,500 and 18,600 puts.

According to options data and OI analysis, the Nifty50 range for the 29th June expiry is between 18,200 and 18,900. On the other hand, 18,500 and 18,700 are the immediate support and resistance levels for this week.


Bank Nifty
June Futures @ 44,320 📈▲33 (+0.08%)
OI Contracts: 92,001 (-0.1%)

The Bank Nifty experienced a recovery from the 44,000 level and closed the day with gains. However, the index failed to surpass its previous day's high, indicating a decrease in momentum in the short term. The breadth of the banking index was balanced, with 6 out of the 12 stocks ending the session in positive territory.

Among banking stocks, Axis Bank (+1.8%) and Kotak Mahindra Bank (+1.7%) were the top gainers. Federal Bank (-0.9%) and ICICI Bank (-0.4%) were the laggards.

The Bank Nifty's options expiring on 8 June have significant positions at the 44,200 and 44,500 calls and 44,000 and 44,100 puts.

According to options data and OI analysis, Bank Nifty's range for the 29th June expiry is between 43,200 and 45,200. On the other hand, 43,900 and 44,500 are this week's immediate support and resistance levels.


FII and DII Data💰

In the cash market, Foreign Institutional Investors (FIIs) bought shares worth ₹385 crore, while Domestic Institutional Investors (DIIs) sold shares worth ₹489 crore. In the derivatives market, FIIs sold index futures worth ₹919 crore and sold index options worth ₹24,474 crore. Further, they bought stock futures worth ₹556 crore and sold stock options worth ₹219 crore.

India VIX

The volatility index advanced 2.1% to 11.38.


Stock Action📊

Long build-up was seen in JK Cement, ACC, Tata Communications, TVS Motor and Astral.

Short build-up was seen in IEX, Persistent Systems, BHEL, Infosys and Dabur.

Under F&O Ban: Indiabulls Housing Finance, India Cement and Manappuram.


*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.

Categories: F&O