Trade setup for 26 May: NIFTY50 rebounds from 18,200, PSU banks under pressure

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 50 (-0.2%) points lower. Its Asian peers are trading mixed. The Nikkei 225 advanced 0.9%, while Hong Kong's Hang Seng index fell 1.9%.

US market update

US stocks ended mixed as tech stocks surged on Thursday, led by Nvidia. Dow Jones ended lower for the fifth consecutive day, down 0.1% lower, whereas NASDAQ advanced 1.7%.

Index Action

June Futures @ 18,430 📈▲45 (+0.2%)
OI Contracts: 1,74,750 (+29.9%)

The Nifty50 pared its losses in the last hour of trade as it rebounded from 18,200 to close near the high point of the day. This was the second consecutive positive expiry for the index. Gains in FMCG, Metal and Auto stocks helped the index settle higher.

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

According to options data and OI analysis, the Nifty50 range for the 1st June expiry is between 17,800 and 18,800. On the other hand, 18,100 and 18,500 are the immediate support and resistance levels for this week.

Bank Nifty
June Futures @ 43,752 📉▼62 (-0.1%)
OI Contracts: 82,562 (+21.4%)

The Bank Nifty ended the day flat but with a minor positive bias. The index slipped below its 20 DMA near the 43,500 level but scaled back to close above that mark. Private banks led the recovery while the PSU banks continued to face pressure.

Bandhan Bank (+1.1%) and IDFC First Bank (+3.0%) were the top gainers among banking stocks. IndusInd Bank (-0.6%) and Punjab National Bank (-0.5%) were the top losers.

The Bank Nifty's options expiring on 25 May have significant positions at the 44,000 and 43,500 calls and 43,500 and 43,000 puts.

According to options data and OI analysis, Bank Nifty's range for the 1st June expiry is between 44,200 and 44,800. On the other hand, 43,000 and 44,200 are this week's immediate support and resistance levels.

FII and DII Data💰

In the cash market, Foreign Institutional Investors (FIIs) bought shares worth ₹589 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹338 crore. In the derivatives market, FIIs sold index futures worth ₹987 crore and bought index options worth ₹14,144 crore. Further, they sold stock futures worth ₹582 crore and sold stock options worth ₹120 crore.

India VIX

The volatility index dropped 4.5% to 12.52.

Stock Action📊

Long build-up was seen in Bajaj Auto, HAL, Indus Towers and Coromandel. 

Short build-up was seen in Tata Chemicals, Ashok Leyland, HDFC, Biocon and Hindalco.


Download IconDownload the Upstox App Today