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Trade setup for 1 August: NIFTY50 bounces back, Metal stocks shine.

Asian Markets Update 7 am

Indian equities may start the day flat to positive, as the GIFT Nifty indicates. The futures contract on the NSE International Exchange (NSE IX) is trading 7 (+0.04%) points higher. Its Asian peers are trading higher. The Nikkei 225 advanced 0.3%, while Hong Kong's Hang Seng index rose .07%.

US market update

US markets ended higher on Monday, but a dip in healthcare stocks capped the upside momentum. Dow Jones advanced 0.2% while NASDAQ rose 0.2%.


Index Action

NIFTY50
August Futures @ 19,837 📈▲85 (+0.4%)
OI Contracts: 2,19,355 (-0.1%)

With the backdrop of positive global cues, the Nifty50 started this week on a positive note. The index slipped to the 20 DMA at the start before recovering and ending near the day's high point. The index is close to the congestion zone of 19,800-19,850.

Among the major companies, CholaFin, Escorts, and PVR Inox will announce their earnings today.

The Nifty50 options expiring on 3 August have significant positions at 19,800 and 20,000 calls and 19,600 and 19,700 puts.

According to options data and OI analysis, the Nifty50 range for the 31st August expiry is between 19,100 and 20,200. On the other hand, 19,500 and 19,900 are this week's immediate support and resistance levels.

BANK NIFTY
August Futures @ 45,869 📈▲171 (+0.3%)
OI Contracts: 1,30,011 (+8.0%)

The Bank Nifty formed an inside candle and closed higher on Monday. The banking index, too, tested its 20 DMA before steadily moving higher throughout the day. Private banks led the rise on the index, ably supported by the PSU peers.

IDFC First Bank (+3.8%) and Bandhan Bank (+2.9%) were the top gainers among banking index stocks. Punjab National Bank (-0.1%) and Kotak Mahindra Bank (-1.0%) were the top laggards.

The Bank Nifty's options expiring on 3 August have significant positions at the 46,000 and 45,500 calls and 45,500 and 45,000 puts.

According to options data and OI analysis, Bank Nifty's range for the 31st August expiry is between 44,500 and 46,900. On the other hand, 45,200 and 46,000 are the immediate support and resistance levels for this week.

FII and DII Data**💰

In the cash market, the Foreign Institutional Investors (FIIs) sold shares worth ₹701 crore, while the Domestic Institutional Investors (DIIs) bought shares worth ₹2,488 crore. In the derivatives market, FIIs sold index futures worth ₹730 crore and sold index options worth ₹9,999 crore. Further, they sold stock futures worth ₹612 crore and bought stock options worth ₹216 crore.

India VIX

The volatility index rose 2.6% and settled at 10.41.


Stock Action📊

The long build-up was seen in Hindustan Copper, Astral, Siemens, GAIL and India Cements.

The short build-up was seen in M&M Financial Services, Piramal Enterprises, Indian Oil Corporation, Apollo Hospitals and MCX.

Under F&O Ban: Indiabulls Housing Finance and Piramal Enterprises.


*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