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Trade setup for 13 June: Nifty50 moving within a range, retail inflation at a 25-month low.

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 higher. Its Asian peers are trading mixed. The Nikkei 225 advanced 1.6%, while Hong Kong's Hang Seng index declined 0.4%.

US market update

US markets ended higher, led by tech stocks a day ahead of the inflation data. Dow Jones rose 0.5% while NASDAQ gained 1.5%.


Index Action

Nifty50
June Futures @ 18,690 📈▲58 (+0.3%)
OI Contracts: 1,82,543 (-5.9%)

Starting the week on a positive note, the Nifty50 snapped its two-day losing streak and ended in the green. In anticipation of the CPI data, the index remained range bound and closed just above the 18,600 mark. Retail inflation came in at a 25-month low of 4.25 in May, largely due to the cooling off of food and fuel prices. Technical setup on the daily charts shows indecisiveness ahead of the Fed interest rate decision later this week.

The Nifty50 options expiring on 15 June have significant positions at 18,700 and 18,600 calls and 18,600 and 18,500 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, 18,450 and 18,750 are the immediate support and resistance levels for this week.


Bank Nifty
June Futures @ 44,096 📉▼21 (-0.05%)
OI Contracts: 98,150 (+3.3%)

The Bank Nifty underperformed the Nifty50 and ended in the red. The banking index remained under pressure throughout the day and settled below its 20 DMA. However, the breadth of the index was positive, with 7 out of the 12 stocks ending in green.

IDFC First Bank (+1.5%) and Bank of Baroda (+1.1%) were the top gainers among banking stocks. HDFC Bank (-0.6%) and ICICI Bank (-0.2%) were the laggards.

The Bank Nifty's options expiring on 15 June have significant positions at the 44,000 and 44,200 calls and 44,000 and 43,500 puts.

According to options data and OI analysis, Bank Nifty's range for the 29th June expiry is between 43,100 and 44,900. On the other hand, 43,600 and 44,00 are this week's immediate support and resistance levels.


FII and DII Data💰

In the cash market, Foreign Institutional Investors (FIIs) sold shares worth ₹626 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹1,793 crore. In the derivatives market, FIIs bought index futures worth ₹968 crore and sold index options worth ₹282 crore. Further, they bought stock futures worth ₹524 crore and sold stock options worth ₹380 crore.

India VIX

The volatility index advanced 1.1% to 11.25.


Stock Action📊

Long build-up was seen in Manappuram, Delta Corp, Bharat Petroleum, Dixon Technologies and REC.

Short build-up was seen in Navin Fluorine, SRF, Wipro, Hindustan Aeronautics and Atul Ltd.

Under F&O Ban: Delta Corp, Indiabulls Housing Finance, IEX and India Cements.


*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