Asian Markets Update @ 7 am
Indian equities may start the day cautiously, SGX Nifty's movement indicated. The SGX Nifty is trading lower by 56 points, suggesting a negative start for the Nifty50 today. However, major Asian markets are trading mixed. Japan's Nikkei 225 advanced 0.4%, while Hong Kong's Hang Seng Index slipped 0.2%.
Global Market Update
US stocks closed lower on Friday after the University of Michigan's consumer confidence data indicated a rise in consumer inflation expectations. Inflation expectations for the year fell from 4.6% to 4.5%, but long-term inflation expectations rose from 3% to 3.2%, the highest level since 2011.
The S&P 500 dropped 0.16%, the Dow Jones fell 0.03%, and the Nasdaq lost 0.35%.
In the week ahead, investors will keep a close eye on the ongoing debt ceiling negotiations between US President Joe Biden and House Speaker Kevin McCarthy, who postponed talks on government finances last week.
Index Action
Nifty50
May Futures @ 18,334 📉▼19 (-0.1%)
OI Contracts: 2,30,517 (-1.4%)
Markets closed 1% higher during a week of continued volatility, supported by strong corporate earnings, sustained foreign institutional buying, and moderating inflation in India and the US.
The index has formed a bullish candle on the weekly chart, signalling a continuation of the uptrend. Markets on Monday will react to India's retail inflation data and the outcome of the Karnataka elections.
The Nifty50 options expiring on 18 May have significant positions at 18,300 and 18,500 calls and 18,200 and 18,300 puts.
According to options data and OI analysis, the Nifty50's long range for the 25th May expiry is between 18,000 and 18,600. On the other hand, 18,200 and 18,400 is the short-term range for this week.
Bank Nifty
May Futures @ 43,760 📈▲298 (+0.6%)
OI Contracts: 89,708 (-3.4%)
The Bank Nifty recouped the previous week's losses and outperformed the broader markets, rising over 2% for the week. The banking index has formed a strong green candle on the weekly chart- keeping the overall structure positive. In the week ahead, all eyes will be on the previous all-time high of 44,151, nearly 1% away from the current level.
Among banking stocks, IndusInd Bank (+1.79%) and Axis Bank (+1.64%) were the top gainers, while Federal Bank (-1.49%) and Bandhan Bank (-1.05%) declined the most on Friday.
The Bank Nifty's options expiring on 18 May have significant positions at the 43,500 and 44,000 calls and 43,500 and 43,000 puts.
According to options data and OI analysis, Bank Nifty's range for the 25th May expiry is between 42,800 and 44,600. On the other hand, 43,300 and 44,300 is the short-term range for this week.
FII and DII Data💰
The Foreign Institutional Investors (FIIs) bought shares worth ₹1,014 crore, while Domestic Institutional Investors (DIIs) sold shares worth ₹922 crore in the cash market. In the derivatives market, FIIs sold index futures and options worth ₹245 crore and ₹255 crore. Further, they bought stock futures and options worth ₹4 crore and ₹12 crore.
India VIX
Ahead of the announcement of the Karnataka state elections, the Volatility Index fell 2.78% to 12.85. The VIX has cooled off after rallying for the last five sessions, giving comfort to the bulls.
Stock Action📊
Long build-up was seen in Eicher Motors, Glenmark Pharmaceuticals, Metropolis, Intellect Design Arena and Astral.
Short build-up was seen in Alkem Laboratories, Balrampur Chini Mills, ICICI Prudential, Hindalco and Bosch.
Under F&O Ban: BHEL, Canara Bank, Punjab National Bank, Manappuram Finance, Delta Corp and Gujarat Narmada Valley Fertilizers & Chemicals (GNFC)