Asian Markets Update 7 am
Indian equities are likely to open in positive territory after a positive lead from the US indices. The SGX Nifty is trading 24 points higher, suggesting a flat to positive start for the Nifty50 today. Asian peers are trading mixed. Japan's Nikkei 225 continues to rise, up 0.7%, while Hong Kong's Hang Seng Index is down 1.4%.
US market update
US stocks rose on Thursday as investors wavered between optimism over the debt ceiling talks and concerns over hawkish comments from the Fed. The futures market is pricing in an almost 40% chance of a rate hike at the next FOMC meeting, up from around 10% a week ago.
The Dow Jones lagged the major benchmarks with a gain of 0.3%. The S&P 500 hit a nine-month high and closed just shy of 4,200. Tech outperformed, with the Nasdaq 100 rising nearly 1.5% to its highest level since April 2022.
Index Action
Nifty50
May Futures @ 18,178 📉▼45 (-0.2%)
OI Contracts: 2,19,395 (-1.8%)
Thursday's trading session started on a promising note for the Nifty50, buoyed by positive cues from the US indices. However, the index faced resistance at higher levels throughout the day, eventually breaking the previous day's low. As a result, the index extended its losing streak for the third consecutive day, ending a volatile session lower.
Profit-taking in some of the major indexes offset the initial gains, and the index moved towards its key support at the 20-day moving average, which is at 18,078.
The Nifty50 options expiring on 25 May have significant positions at 18,200 and 18,300 calls and 18,200 and 18,000 puts.
According to options data and OI analysis, the Nifty50 range for the 25th May expiry is between 17,900 and 18,400. On the other hand, 18,100 and 18,350 are the immediate support and resistance levels for this week.
Bank Nifty
May Futures @ 43,807 📈▲86 (+0.2%)
OI Contracts: 82,913 (-0.3%)
The Bank Nifty outperformed the Nifty50 index and maintained its opening gains in the first half of the session. However, the index pared its gains after banking major SBI announced its March quarter results. The largest bank's net profit surged 83% y-o-y to ₹16,695 crore.
AU Small Finance Bank (+2.2%) and Kotak Mahindra Bank (+0.9%) advanced the most among banking stocks. Bank of Baroda (-2.9%) and SBI (-2.0%) were the top losers.
The Bank Nifty's options expiring on 25 May have significant positions at the 44,000 and 44,500 calls and 43,000 and 43,500 puts.
According to options data and OI analysis, Bank Nifty's range for the 25th May expiry is between 43,000 and 44,400. On the other hand, 43,400 and 44,200 are this week's immediate support and resistance levels.
FII and DII Data💰
In the cash market, Foreign Institutional Investors (FIIs) bought shares worth ₹970 crore, while Domestic Institutional Investors (DIIs) sold shares worth ₹849 crore. In the derivatives market, FIIs bought index futures and options worth ₹656 crore and ₹11,740 crore. Further, they sold stock futures worth ₹1,140 crore and bought stock options worth ₹171 crore.
India VIX
The volatility index slipped 2.3% to 12.79.
Stock Action📊
Long build-up was seen in Cholamandalam Investment, AU Small Finance Bank and Bajaj Finance.
Short build-up was seen in Godrej Properties, Zydus Lifesciences and Alkem Laboratories.
Under F&O Ban: ABFRL, Balrampur Chini Mills, Delta Corp, GNFC, L&T Finance Holdings, LIC Housing Finance, Manappuram Finance and Punjab National Bank.
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