Trade setup for 26 July: NIFTY50 closed flat amid volatility; all eyes are on US Fed.

Asian Markets Update 7 am

Indian equities may start the day flat to positive, as the GIFT Nifty indicates. The futures contract on the NSE International Exchange (NSE IX) is trading 2 (+0.01%) points higher. Its Asian peers are trading mixed. The Nikkei 225 advanced 0.02%, while Hong Kong's Hang Seng index declined 0.5%.

US market update

US markets extended their run and ended the day higher with a rise in Tech stocks. Dow Jones rose for the twelfth straight day and settled 0.08% higher, while NASDAQ gained 0.6%.

Index Action

NIFTY50 
July Futures @ 19,820 📈▲8 (+0.04%)
OI Contracts: 1,26,657 (+53.5%)

The Nifty50 ended a volatile session on a flat note with a positive bias. The index gave up its opening gains but rebounded from the 19,600 level. Gains in Metals and Auto stocks helped the index recover in the second half and end with modest gains.

Among major companies, Axis Bank, Bajaj Finance, Cipla, and Tech Mahindra will announce their earnings today.

The Nifty50 options expiring on 27 July have significant positions at 19,800 and 19,700 calls and 19,500 and 19,700 puts.

According to options data and OI analysis, the Nifty50's range for the 31st August expiry is between 19,100 and 20,400 levels. On the other hand, 19,500 and 19,800 are this week's immediate support and resistance levels.

BANK NIFTY
July Futures @ 46,086 📉▼59 (-0.1%)
OI Contracts: 75,570 (+16.5%)

The Bank Nifty once again met with resistance near the 46,200 level and slipped lower. Despite a recovery from the lower level of 45,600, the index failed to close in positive territory. The index ended lower with a negative breadth of 10 stocks declining versus 2 stocks gaining.

Among banking index stocks, HDFC Bank (+1.0%) and ICICI Bank (+0.2%) were the top gainers. Punjab National Bank (-2.2%) and IndusInd Bank (-1.4%) were the top laggards.

The Bank Nifty's options expiring on 27 July have significant positions at the 46,000 and 46,200 calls and 46,000 and 45,000 puts.

According to options data and OI analysis, Bank Nifty's range for the 31st August expiry is between 44,600 and 47,200. On the other hand, 45,300 and 46,200 are the immediate support and resistance levels for this week.

FII and DII Data**💰

In the cash market, Foreign Institutional Investors (FIIs) bought shares worth ₹1,088 crore, while Domestic Institutional Investors (DIIs) sold shares worth ₹333 crore. In the derivatives market, FIIs sold index futures worth ₹1,059 crore and bought index options worth ₹30,184 crore. Further, they bought stock futures worth ₹2,267 crore and bought stock options worth ₹334 crore.

India VIX

The volatility index fell 12.1% and settled at 10.24, its lowest closing ever.

Stock Action📊

The long build-up was seen in ACC, ONGC, Aditya Birla Fashion, NTPC and Manappuram Finance. 

The Short build-up was seen in Asian Paints, Navin Fluorine, Indigo, Larsen & Toubro and DLF.

Under F&O Ban:  Canara Bank, Delta Corp, Indiabulls Housing Finance, RBL Bank and Sun TV.

*In Futures and Options or F&O, long build-up means an increase in Open Interest (OI)

long 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.