Asian Markets Update 7 am
Indian equities may start the day negative, as the SGX Nifty indicates. The futures contract on the Singapore exchange trades 37 (-0.2%) points lower. Its Asian peers are trading mixed. The Nikkei 225 advanced 0.1%, while Hong Kong's Hang Seng index fell 1.0%.
US market update
US stocks settled lower for the fourth day in a row as lawmakers failed to hit a breakthrough on the debt ceiling discussions. Dow Jones ended 0.7% lower, whereas NASDAQ closed 0.6% lower.
Index Action
Nifty50
May Futures @ 18,300 📉▼65 (-0.3%)
OI Contracts: 1,72,959 (+1.3%)
The Nifty50 ended a volatile session in the red as it again faced rejection from the 18,400 level. The attempted a failed recovery after a negative start but was dragged lower by pressure from Metal and Financial stocks.
The index also negated the higher high and higher low formation of the last two days. Ahead of today's monthly expiry, options contracts at 18,400 calls and 18,200 puts have the highest open interest base.
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 OI analysis, the Nifty50 range for the 25th May expiry is between 18,000 and 18,500. On the other hand, 18,200 and 18,400 are the immediate support and resistance levels for this week.
Bank Nifty
May Futures @ 43,713 📉▼268 (-0.6%)
OI Contracts: 68,423 (-6.5%)
The Bank Nifty could not hold above the 44,000 mark and settled more than half a per cent lower. It was a tough day for banking and financial stocks, with the PSU and private bank indices ending in the red. The banking index has now slipped below the triangle pattern and will look at the 20 DMA near 43,500 for support.
Among banking stocks, Bandhan Bank (+2.8%) and IndusInd Bank (+0.9%) were the top gainers. Federal Bank (-1.4%) and Punjab National Bank (-1.3%) were the top losers.
The Bank Nifty's options expiring on 25 May have significant positions at the 44,000 and 43,900 calls and 43,500 and 43,000 puts.
According to options data and OI analysis, Bank Nifty's range for the 25th May expiry is between 43,000 and 44,500. On the other hand, 43,300 and 44,000 are this week's immediate support and resistance levels.
FII and DII Data💰
In the cash market, Foreign Institutional Investors (FIIs) bought shares worth ₹1,185 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹300 crore. In the derivatives market, FIIs sold index futures worth ₹458 crore and bought index options worth ₹1,953 crore. Further, they sold stock futures worth ₹201 crore and sold stock options worth ₹556 crore.
India VIX
The volatility index rebounded from its 20 DMA and crossed the level of 13 after four sessions. It rose 3.9% to 13.11.
Stock Action📊
Long build-up was seen in Crompton Greaves, Biocon, Deepak Nitrite, Maruti Suzuki and Vedanta.
Short build-up was seen in Cummins India, Ashok Leyland, ICICI Lombard, Adani Enterprises and Hindalco.
Under F&O Ban: Delta Corp and Indiabulls Housing Finance.