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Trade setup for 14 June: Nifty50 above 18700. Are bulls back?

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 40 (+0.2%) points higher. Its Asian peers are trading higher. The Nikkei 225 advanced 1.0%, while Hong Kong's Hang Seng index gained 0.1%.

US market update

US markets ended higher as data showed inflation slowing to a more than a year low, bolstering expectations of a Fed pause. Dow Jones rose 0.4%, while NASDAQ gained 0.8%.


Index Action

Nifty50
June Futures @ 18,775 📈▲92 (+0.4%)
OI Contracts: 1,80,757 (-0.9%)

The Nifty50 moved higher and settled less than a per cent away from the all-time high level. Aided by the in-line inflation number, the index opened strong and piled on the gains in the second half. Ahead of the Fed interest rate decision, which will be announced later today, the index closed above the resistance level of 18,700.

The Nifty50 options expiring on 15 June have significant positions at 18,900 and 18,700 calls and 18,700 and 18,600 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, 18,550 and 18,850 are the immediate support and resistance levels for this week.


Bank Nifty
June Futures @ 44,230 📈▲132 (+0.3%)
OI Contracts: 98,977 (+0.8%)

The Bank Nifty recovered lost ground from the 43,900 level and settled in green. With today's rise, the index also closed above its 20 DMA. The weekly option setup shows a heavy buildup at 44,000 call and put both.

IDFC First Bank (+2.7%) and Bandhan Bank (+1.7%) were the top gainers among banking stocks. Kotak Mahindra Bank (-1.2%) and Federal Bank (-0.5%) were the laggards.

The Bank Nifty's options expiring on 15 June have significant positions at the 44,000 and 44,500 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 44,400 are this week's immediate support and resistance levels.


FII and DII Data💰

In the cash market, Foreign Institutional Investors (FIIs) bought shares worth ₹1,677 crore, while Domestic Institutional Investors (DIIs) sold shares worth ₹203 crore. In the derivatives market, FIIs bought index futures worth ₹615 crore and sold index options worth ₹11,559 crore. Further, they bought stock futures worth ₹785 crore and sold stock options worth ₹84 crore.

India VIX

The volatility index declined 1.2% to 11.11.


Stock Action📊

Long buildup was seen in Tata Communications, Oracle Financial Services, Dixon Technologies, Cummins India and Astral.

Short buildup was seen in Indigo, CONCOR, Adani Ports, SBI and Federal Bank.

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