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Trade setup for 24 May: Nifty50 slips into consolidation,18,500 remains a hurdle

Blog | F&O

Asian Markets Update 7 am

Indian equities may start the day negative, as the SGX Nifty indicates. The futures contract on the Singapore Exchange is trading 69 (-0.3%) points lower. Its Asian peers are trading in the red. The Nikkei 225 declined 0.8%, while Hong Kong's Hang Seng index fell 1.1%.

US market update

U.S. stocks ended lower on concerns of U.S. default after another round of debt-ceiling discussions ended without a deal. Dow Jones ended 0.6% lower, whereas NASDAQ closed 1.2% lower.


Index Action

Nifty50
May Futures @ 18,358 📈▲26 (+0.1%)
OI Contracts: 1,70,593 (-11.8%)

The Nifty50 crossed the 18,400 level during the day but failed to sustain at higher levels. Rise in Metal, Oil & Gas and Auto stocks helped the index close in the green for the third straight day.

The index has made higher highs and higher lows for the last two sessions, and the support zone has shifted higher to 18,200 and the calendar year high near 18,450, acting as near-term resistance.

The Nifty50 options expiring on 25 May have significant positions at 18,400 and 18,500 calls and 18,200 and 18,300 puts.

According to options data and O.I. analysis, the Nifty50 range for the 25th May expiry is between 18,000 and 18,500. On the other hand, 18,250 and 18,450 are the immediate support and resistance levels for this week.


Bank Nifty
May Futures @ 43,945 📈▲22 (+0.05%)
OI Contracts: 73,245 (-7.9%)

The Bank Nifty maintained its opening gains and held above the 44,000 mark for most of the trading session. A dip in private banks dragged the banking index below this psychologically crucial level but ended the day in the green.

Bandhan Bank (+1.0%) and Bank of Baroda (+1.2%) were the top gainers among banking stocks. Kotak Mahindra Bank (-0.9%) and IDFC First Bank (-0.5%) 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 44,000 and 43,500 puts.

According to options data and O.I. analysis, Bank Nifty's range for the 25th May expiry is between 43,400 and 44,500. On the other hand, 43,700 and 44,300 are this week's immediate support and resistance levels.


FII and DII Data💰

In the cash market, Foreign Institutional Investors (FIIs) bought shares worth ₹182 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹397 crore. In the derivatives market, FIIs bought index futures worth ₹820 crore and sold index options worth ₹19,545 crore. Further, they bought stock futures worth ₹1,235 crore and sold stock options worth ₹186 crore.

India VIX

The volatility index rose to 12.61, up 0.3%.


Stock Action📊

Long build-up was seen in Delta Corp, Crompton Greaves, Vedanta, Aditya Birla Fashion, Torrent Pharma and TVS Motor. 

Short build-up was seen in ONGC, Apollo Hospitals, Ashok Leyland, ICICI Lombard and HDFC AMC.

Under F&O Ban: Delta Corp and Indiabulls Housing Finance.

 

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