Asian Markets Update @ 7 am
The SGX Nifty is trading 34 (+0.2%) points lower than its last close, indicating a positive start for the Nifty50 today. Major Asian markets are also trading in the red. Japan's Nikkei 225 dropped 2.2%, while Hong Kong's Hang Seng Index fell 0.9%.
Global Market Update
US stocks ended mixed amid the ongoing banking sector turmoil and a sharp drop in Treasury yields raising hopes of a less aggressive Federal Reserve. The Dow Jones slipped 0.2% to end at 31,819. The S&P 500 fell 0.1% to 3,855, while the Nasdaq Composite gained 0.4% and finished at 11,188.
Index Action
Nifty50
March Futures @ 17,220 📉▼232 (-1.3%)
OI Contracts: 2,32,466 (+0.6%)
Amid mixed global cues, the Nifty50 took a sharp U-turn from its early gains and plunged deep into the red. With a sharp spike in volatility and pressure across all the sectors, the benchmark index plummeted to 17,100 level, settling near its 5-month low.
All eyes will be on the US markets, where the authorities have announced a host of measures to limit the impact of failing banks, but investors will keenly watch the impact in the near term. Meanwhile, India’s CPI inched lower to 6.4% in February from 6.52% in January but still remains above the RBI’s target.
All major sectoral indices ended in red, with PSU Bank (-2.8%), Media (-2.5%) and Private Bank (-2.4%) being the biggest laggards.
The Nifty50 options expiring on 16 March have significant positions at 17,500 and 17,400 calls and 17,000 and 17,200 puts.
According to options data and OI analysis, the Nifty50's long range for the 29 March expiry is between 16,600 and 17,700. On the other hand, 16,900 and 17,400 is the short-term range for the current week.
Bank Nifty
March Futures @ 39,775 📉▼839 (-2.0%)
OI Contracts: 1,05,007 (+13.2%)
The Bank Nifty fell more than 1,200 from the day's high and slipped below the 39,500 mark. Financial stocks were the worst hit by the weak global sentiment surrounding the sector due to the aftermath of the failure of banks in the US.
All the 12 banking stocks ended lower, with IndusInd Bank (-7.4%) and AU Small Finance Bank (-4.4%) losing the most.
The Bank Nifty's options expiring on 16 March have significant positions at the 40,500 and 41,000 calls and 39,500 and 39,000 puts.
According to options data and OI analysis, Bank Nifty's range for the 29th March expiry is between 38,200 and 40,900. On the other hand, 38,800 and 40,300 is the short-term range for the current week.
FII and DII Data💰
The Foreign Institutional Investors (FIIs) sold shares worth ₹1,546 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹1,418 crore in the cash market. In the derivatives market, FIIs sold index futures worth ₹619 crore and bought index options worth ₹8,011 crore. Further, they sold stock futures worth ₹1,585 crore and sold stock options worth ₹90 crore.
India VIX
The fear gauge India VIX jumped 20.95% to 16.22, its 1-month high.
Stock Action📊
Long build-up was seen in Tech Mahindra, ICICI Lombard, Colgate-Palmolive and MCX.
Short build-up was seen in Ipca Labs, AU Small Finance Bank, IndusInd Bank, Atul Ltd and Persistent Systems.
Under F&O Ban: GNFC.
*In Futures and Options or F&O, long build-up means an increase in Open Interest (OI) along 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.