Trade setup for 08 June: Nifty50 extended its winning streak, RBI rate decision today.

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 18 (+0.1%) points higher. 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 ended mixed as investors await the following update from the Fed on 15 June on inflation and the state of the economy. Dow Jones rose 0.2% while NASDAQ declined 1.2%.

Index Action

Nifty50
June Futures @ 18,800 📈▲127 (+0.6%)
OI Contracts: 1,95,373 (+11.2%)

The Nifty50 moved past its congestion zone of 18600-18700 and closed at the highest level of 2023 so far. Starting the day on a positive note, the index gained momentum in the last hour and settled above 18,700. The index formed a long bull candle on the daily charts and is less than a per cent away from its all-time high.

The Nifty50 options expiring on 8 June have significant positions at 18,800 and 18,700 calls and 18,600 and 18,700 puts.

According to options data and OI analysis, the Nifty50's range for the 29th June expiry is between 18,300 and 19,000 levels. On the other hand, 18,600 and 18,850 are the immediate support and resistance levels for this week.

Bank Nifty
June Futures @ 44,389 📈▲80 (+0.1%)
OI Contracts: 94,326 (2.5%)

Ahead of the RBI policy announcement today, the Bank Nifty ended in green but underperformed the Nifty50 as investors stayed cautious on interest-rate sensitive stocks. The banking index came off its opening high level of 44,350 but settled with a quarter of a per cent gains. The interest rate decision and commentary by the RBI Governor could set the directional tone for the index.

Among banking stocks, AU Small Finance Bank (+1.4%) and Bank of Baroda (+1.1%) were the top gainers. Kotak Mahindra Bank (-1.0%) and IDFC First Bank (-0.2%) were the laggards.

The Bank Nifty's options expiring on 8 June have significant positions at the 44,500 and 44,300 calls and 44,000 and 44,200 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, 44,000 and 44,500 are the immediate support and resistance levels for this week.

FII and DII Data💰

In the cash market, Foreign Institutional Investors (FIIs) bought shares worth ₹1,382 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹392 crore. In the derivatives market, FIIs bought index futures worth ₹806 crore and sold index options worth ₹1,668 crore. Further, they bought stock futures worth ₹1,893 crore and sold stock options worth ₹111 crore.

India VIX

The volatility index advanced 0.5% to 11.44.

Stock Action📊

Long build-up was seen in Britannia, United Breweries, Can Fin Homes, HPCL and SAIL. 

Short build-up was seen in Cipla, Ipca Labs, M&M Financial Services, Sun TV and ICICI Bank.

*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.