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Trade setup for 23 March: Markets end range-bound session higher, 17,200 a key hurdle for expiry?

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Asian Markets Update @ 7 am 

The SGX Nifty is trading 43 points (-0.2%) lower compared to its last close, indicating a negative start for the Nifty50 today. Major Asian markets are trading mixed. Japan's Nikkei 225 fell 0.5%, while Hong Kong's Hang Seng Index advanced 0.3%.

Global Market Update

US stocks fell sharply on Wednesday after the Fed announced a 25 bps rate hike and said that there could be at least one more rate hike this year. The Fed also ruled out any rate cuts this year. The Dow Jones fell 1.6% to end at 32,030. The S&P 500 declined 1.6% to 3,936, while the Nasdaq Composite slipped 1.6% and finished at 11,669.

Index Action

March Futures @ 17,183 📈23 (+0.1%)
OI Contracts: 2,31,063 (-6.0%)

The Nifty50 settled higher for the second straight day as fears concerning the US banking sector receded following comments of the Treasury Secretary. The index traded in a range of 100 points before closing nearly a quarter of a percent higher.

Sectorally, Media (-0.3%) and Realty (-0.1%) were the biggest draggers, while Pharma (+1.0%) and PSU Bank (+0.8%) were among the top gainers.

The Nifty50 options expiring on 23 March have significant positions at 17,500 and 17,300 calls and 17,000 and 17,100 puts.

According to options data and OI analysis, the Nifty50's long range for the 29 March expiry is between 16,700 and 17,500. On the other hand, 17,000 and 17,300 is the short-term range for this week.

Bank Nifty
March Futures @ 40,093 📈46 (+0.1%)
OI Contracts: 93,390 (-9.5%)

The banking index crossed the 40,000 level but faced resistance near its 20-DMA. It slipped in the red but recovered to close in the green in the second half, holding above its 200-DMA.

Among banking stocks, Bandhan Bank (+4.2%) and Bank of Baroda (+2.6%) were the top gainers, whereas Axis Bank (-0.7%) and HDFC Bank (+0.2%) were the biggest laggards.

The Bank Nifty's options expiring on 23 March have significant positions at the 41,500 and 40,000 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 39,000 and 41,000. On the other hand, 39,600 and 40,400 is the short-term range for this week

FII and DII Data💰

The Foreign Institutional Investors (FIIs) bought shares worth ₹61 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹383 crore in the cash market. In the derivatives market, FIIs sold index futures worth ₹100 crore and sold index options worth ₹13,038 crore. Further, they bought stock futures worth ₹487 crore and stock options worth ₹123 crore.

India VIX 

The fear gauge India VIX fell 1.7% to 14.81.

Stock Action📊

Long build-up was seen in JK Cement, GAIL, Max Financial Services, Manappuram Finance and IDFC.

Short build-up was seen in Coal India, Tata Power, SAIL, Dixon Technologies and Cholamandalam Investment.

Under F&O Ban: Biocon and Indiabulls Housing 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: Cash market figures are provisional.

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