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Trade setup for 24 April: NIFTY50 consolidates near 200-DMA

Asian Markets Update @ 7 am

The SGX Nifty is trading 39 points (+0.2%) higher compared to its last close, indicating a flat to a positive start for the Nifty50 today. Major Asian markets are trading mixed. Japan's Nikkei 225 gained 0.2%, while Hong Kong's Hang Seng dropped 0.2%.

Global Market Update

US stocks ended higher but cautiously ahead of results from big tech companies like Alphabet and Microsoft this week. The Dow Jones advanced 0.07% to close at 33,808. The S&P 500 rose 0.09% to 4,133, while the Nasdaq Composite rose 0.1% to close at 12,072.


Index Action

Nifty50
April Futures @ 17,650 📉▼5 (-0.03%)
OI Contracts: 1,82,120 (-1.6%)

The Nifty continues consolidating near its 200-DMA, with most sectors ending in the red. The index rebounded from the 17,550 level and settled absolutely flat. Today the markets will react to the results declared by Reliance Industries and ICICI Bank.

Sectorally, Media (+1.3%) and FMCG (+0.8%) were the top gainers, whereas Metal (-1.3%) and Realty (-2.1%) were the biggest laggards.

The Nifty50 options expiring on 27 April have significant positions at 17,700 and 18,000 calls and 17,700 and 17,000 puts.

According to options data and OI analysis, the Nifty50's long range for the 25th May expiry is between 17,100 and 18,000. On the other hand, 17,400 and 17,800 is the short-term range for this week.


Bank Nifty
April Futures @ 42,125 📉▼150 (-0.3%)
OI Contracts: 91,543 (-3.9%)

The Bank Nifty ended lower on Friday, underperforming the Nifty50. The banking index recovered from below 42,000 but settled in the red. With 8 of the 12 stocks ending lower, the banking index closed with over one-third of a per cent cuts.

Among banking stocks, Bandhan Bank (+1.2%) and Kotak Mahindra Bank (+0.5%) were the biggest gainers, while AU Small Finance Bank (-1.9%) and ICICI Bank (-0.9%) were the only laggards.

The Bank Nifty's options expiring on 27 April have significant positions at the 42,500 and 43,000 calls and 42,000 and 41,500 puts.

According to options data and OI analysis, Bank Nifty's range for the 25th May expiry is between 40,800 and 43,500. On the other hand, 41,500 and 42,700 is the short-term range for this week.


FII and DII Data💰

The Foreign Institutional Investors (FIIs) sold shares worth ₹2,116 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹1,632 crore in the cash market. In the derivatives market, FIIs bought index futures worth ₹104 crore and sold index options worth ₹3,895 crore. Further, they bought stock futures worth ₹467 crore and stock options worth ₹48 crore.

India VIX

The fear gauge India VIX fell 2.6% to 11.63.


Stock Action📊

Long build-up was seen in Navin Fluorine, Vodafone Idea, Godrej Consumer Products, ITC and Indus Towers.

Short build-up was seen in PVR, Tech Mahindra, City Union Bank, Ramco Cements and HDFC Life.


*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.

Categories: F&O