Asian Markets Update @ 7 am
SGX Nifty is trading higher by 17 (+0.1%) points from its previous close, indicating a flat start for the Nifty50 today. Major Asian markets are also trading in the green. Japan's Nikkei 225 gained 0.1%, while Hong Kong's Hang Seng index added 0.8%.
Global Markets Update
US stocks closed lower on Thursday after recent retail sales data showed a slowdown in consumer spending. However, a reading on wholesale price inflation reflected that price pressures are easing.
The Dow Jones and S&P 500 extended fall to the third day and declined 0.7% each. The technology-heavy Nasdaq Composite fell nearly 1%.
Index Action
Nifty50
January Futures: 18,105 📉▼ 93 (-0.5%)
OI Contracts: 2,12,725 (-6.2%)
Amid weak global cues, the Nifty50 index fell to 18,100 levels, erasing some of the previous session's gains. It closed Thursday's session lower and traded in a range of 92 points on weekly options expiry. The headline index formed a inside candle on daily charts, indicating non-directional activity ahead.
Except for Oil & Gas (+0.4%) and PSU Bank (+0.3%), all the major sectoral indices ended in red. FMCG (-0.8%) and Metal (-0.5%) declined the most, while the IT index closed flat.
Nifty50’s options contracts expiring on 25 January have sizable positions at 18,200 and 18,500 call options and 18,100 and 18,000 put options.
As per options data and OI analysis, the broad range for the Nifty50 is between 17,400 and 18,800 levels. On the other hand, 18,000 and 18,300 are the critical levels to watch for the next week.
Bank Nifty
January Futures: 42,316 📉▼ 207 (-0.4%)
OI Contracts: 69,773 (+0.9%)
The Bank Nifty continued its sideways trajectory and traded in a range of 272 points on weekly options expiry. Among banking stocks, Punjab National Bank (+0.7%) and Axis Bank (+0.5%) were the top gainers. IndusInd Bank (-1.8%) declined post its December quarter results, while Kotak Mahindra Bank (-1.7%) witnessed selling pressure.
Bank Nifty’s options contracts expiring on 25 January have sizable positions at 42,500 and 43,000 call options and 42,000 and 41,500 put options.
As per options data and OI analysis, the broad range for the Bank Nifty is between 41,400 and 43,600 levels. On the other hand, 42,000 and 42,800 are the critical levels to watch for the next week.
FII and DII Data**💰
The Foreign Institutional Investors (FIIs) bought shares worth ₹399 crore, while Domestic Institutional Investors (DIIs) sold shares worth ₹128 crore in the cash market. In the derivatives market, FIIs sold index futures worth ₹382 crore and bought index options worth ₹15,440 crore. Further, they sold stock futures worth ₹666 crore and sold stock options worth ₹37 crore.
India VIX
The India VIX, which measures the implied volatility of Nifty50 options, fell 2.8% to 13.96.
Stock Action📊
Long build-up was seen in Polycab, Persistent Systems, ONGC, SAIL and Vedanta.
Short build-up was seen in Torrent Power, Asian Paints, IndusInd Bank, Tata Motors and Adani Enterprises.
Under F&O Ban: Delta Corp, GNFC, L&T Finance and Manappuram Finance.
*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.