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 85 (-0.4%) points lower. Its Asian peers are trading lower. The Nikkei 225 declined 1.1%, while Hong Kong's Hang Seng index fell 1.0%.
US market update
US markets ended lower amid rising concerns over global growth. Dow Jones declined 1.0% while NASDAQ fell 1.1%.
Index Action
NIFTY50
August Futures @ 19,471📉▼33 (-0.1%)
OI Contracts: 2,13,138 (-1.7%)
The Nifty50 clawed back from its opening cuts and ended the day flat with a positive bias. As discussed in the previous update, the index took support near its 50 DMA at 19,250 level and rebounded above 19,400. The index has made a lower high, lower low formation for the last three sessions.
The Nifty50 options expiring on 17 August have significant positions at 19,600 and 19,500 calls and 19,400 and 19,300 puts.
According to options data and OI analysis, the Nifty50 range for the 31st August expiry is between 19,000 and 19,700. On the other hand, 19,300 and 19,550 are this week's immediate support and resistance levels.
BANK NIFTY
August Futures @ 44,219 📉▼244 (-0.5%)
OI Contracts: 1,26,977 (-6.3%)
Bank Nifty fell below 43,800 but moved higher as the day progressed and regained the 44,000 level. Monday's closing for the banking is its lowest since the last week of June. The banking index continued to sink further away from its 50 DMA. The 100 DMA for the index is near 43,600, which the investors will keep an eye on.
ICICI Bank (+0.7%) and Bandhan Bank (+0.4%) were the top gainers among banking index stocks. SBI (-2.3%) and Bank of Baroda (-2.0%) 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 43,800 puts.
According to options data and OI analysis, Bank Nifty's range for the 31st August expiry is between 43,100 and 45,000. On the other hand, 43,700 and 44,400 are this week's immediate support and resistance levels.
Nifty Financial Services
August Futures @ 19,723 📉▼109 (-0.5%)
OI Contracts: 2,290 (-4.9%)
The FINNIFTY took support near the 19,500 level but settled with over one-third of a per cent cuts. The FINNIFTY's options expiring on 22 August have significant positions at the 19,700 and 20,000 calls and 19,600 and 19,500 puts.
According to options data and OI analysis of contracts expiring on 8th August, FINNIFTY's immediate support and resistance levels are at 19,500 and 19,800.
FII and DII Data**💰
In the cash market, the Foreign Institutional Investors (FIIs) sold shares worth ₹2,324 crore, while the Domestic Institutional Investors (DIIs) bought shares worth ₹1,460 crore. In the derivatives market, FIIs sold index futures worth ₹439 crore and sold index options worth ₹5,269 crore. Further, they sold stock futures worth ₹1,119 crore and sold stock options worth ₹32 crore.
India VIX
The volatility index advanced 4.1% and settled at 12.0.
Stock Action📊
The long build-up was seen in NMDC, Divi's Lab, Hindustan Aeronautics, Aurobindo Pharma and Asian Paints.
The short build-up was seen in Muthoot Finance, City Union Bank, SAIL, SBI and CONCOR.
Under F&O Ban: Balrampur Chini, Chambal Fertilisers, Delta Corp, GNFC, Granules, 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.