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Trade setup for 14 Aug: NIFTY50 closed below 19,450. FII outflows continued.

Asian Markets Update 7 am

Indian equities may start the day negative, as the GIFT Nifty indicates. The futures contract on the NSE International Exchange (NSE IX) is trading 32 (-0.1%) points lower. Its Asian peers are trading lower. The Nikkei 225 declined 0.4%, while Hong Kong's Hang Seng index fell 1.9%.

US market update

US markets ended mixed, with tech stocks continuing to face pressure. Dow Jones advanced 0.3% while NASDAQ declined 0.5%.


Index Action

NIFTY50
August Futures @ 19,503 📉▼93 (-0.4%)
OI Contracts: 2,16,953 (-0.4%)

The Nifty50 extended its opening cuts and ended near the day's low point. On the back of ongoing foreign investors' outflows and mixed global cues, the index fell below the 19,450 support level and settled at the week's lowest point. The index continues to face resistance near its 20 DMA, and investors will look to 50 DMA near 19,250 for near-term support. The Upcoming macro data, including the WPI and retail inflation, will be on the investor's radar for this truncated week.

The Nifty50 options expiring on 17 August have significant positions at 19,600 and 19,500 calls and 19,400 and 19,500 puts.

According to options data and OI analysis, the Nifty50's range for the 31st August expiry is between 19,000 and 19,800 levels. On the other hand, 19,200 and 19,600 are this week's immediate support and resistance levels.

BANK NIFTY

August Futures @ 44,477 📉▼294 (-0.6%)
OI Contracts: 1,35,523 (+8.1%)

Bank Nifty fell to its lowest level in more than one month and ended near 44,100. The banking index broke down from its recent trading range of 44,500 to 45,000. The banking index settled below its 50 DMA, and the next near-term moving average is the 100 DMA at 43,500, which the investors will keep an eye on.

Punjab National Bank (+2.1%) and IDFC First Bank (+0.6%) were the top gainers among banking index stocks. IndusInd Bank (-2.3%) and ICICI Bank (-1.1%) were the top laggards.

The Bank Nifty's options expiring on 17 August have significant positions at the 44,500 and 45,000 calls and 44,000 and 44,500 puts.

According to options data and OI analysis, Bank Nifty's range for the 31st August expiry is between 43,200 and 45,000. On the other hand, 43,800 and 44,700 are this week's immediate support and resistance levels.

FINNIFTY

August Futures @ 19,838 📉▼175 (-0.8%)
OI Contracts: 2,324 (+15.1%)

The FINNIFTY fell more than three-quarters of a per cent and settled near the day's low point. The FINNIFTY's options expiring on 14 August have significant positions at the 20,000 and 19,900 calls and 19,500 and 19,600 puts.

According to options data and OI analysis of contracts expiring on 8th August, FINNIFTY's immediate support and resistance levels are at 19,600 and 20,000.

FII and DII Data**💰

In the cash market, the Foreign Institutional Investors (FIIs) sold shares worth ₹3,073 crore, while the Domestic Institutional Investors (DIIs) bought shares worth ₹500 crore. In the derivatives market, FIIs sold index futures worth ₹99 crore and bought index options worth ₹6,832 crore. Further, they sold stock futures worth ₹1,583 crore and sold stock options worth ₹193 crore.

India VIX

The volatility index advanced 1.0% and settled at 11.52.


Stock Action📊

The long build-up was seen in Coforge, Reliance Industries, IDFC First Bank, Exide Industries and IRCTC.

The short build-up was seen in Apollo Tyres, Max Financial Services, Britannia, Info Edge and JK Cement.

Under F&O Ban:Balrampur Chini, Chambal Fertilisers, Delta Corp, Granules, Hindustan Copper, Indiabulls Housing Finance, India Cements, Manappuram and Zee Entertainment.


*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