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Trade setup for 27 Feb: Nifty50 posts biggest weekly fall since June 2022, 17,600 key level to watch

Asian Markets Update @ 7 am

The SGX Nifty is trading 37 (-0.2%) points lower than its last close, indicating a flat to negative start for the Nifty50 today. Major Asian markets are trading in the red. Japan's Nikkei 225 fell 0.2%, while Hong Kong's Hang Seng Index dropped 0.5%.

Global Market Update

US stocks fell on Friday as rising Treasury yields weighed on tech stocks after data showed inflation remained high, stoking fears of more aggressive Fed rate hikes.

The Dow Jones and S&P both declined 1%, while technology-heavy Nasdaq Composite slipped 1.6%.


Index Action

Nifty50
March Futures @ 17,560  📉▼63 (-0.3%)
OI Contracts: 2,09,919 (+0.3%)

The Nifty50 extended its fall for the sixth consecutive day to post its worst weekly performance in 8 months amid weak global cues and inflation concerns. The index opened near 17,600 level but slipped and closed below 17,500 led by a fall in PSU banks, metal and auto stocks.

Sectorally, Oil & Gas (+0.7%) and Pharma (+0.2%) were the top gainers, while Metal (-3.0%) and PSU Bank (-0.8%) were the biggest laggards.

The Nifty 50 options contracts expiring on 2 March have significant positions at the 17,600 and 18,000 calls and the 17,000 and 17,400 puts.

According to options data and OI analysis, the Nifty50's broad range for the March 29 expiry is between 16,900 and 18,000. On the other hand, 17,250 and 17,650 is the short-term range for the current week.

Bank Nifty
March Futures: 40,145 📉▼157 (-0.3%)
OI Contracts: 1,07,359 (+2.7%)

The Bank Nifty surged to 40,350 at the open but failed to hold on to the opening gains and closed in the red. Led by a fall in PSU banks, the banking index lost nearly 100 points to close just above the 39,900 level.

Among banking stocks, IDFC First Bank (+1.0%) and Axis Bank (+0.8%) advanced the most, while Punjab National Bank (-1.4%) and HDFC Bank (-0.8%) were the top losers.

The Bank Nifty’s options contracts expiring on 2 March have significant positions at the 40,000 and 41,000 calls and 40,000 and 39,000 puts.

As per options data and OI analysis, Bank Nifty’s range for the 29th March expiry is between 38,400 and 41,400. On the other hand, 39,300 and 40,500 is the short-term range for the current week.


FII and DII Data💰

The Foreign Institutional Investors (FIIs) sold shares worth ₹1,470 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹1,400 crore in the cash market. In the derivatives market, FIIs sold index futures worth ₹260 crore and sold index options worth ₹3,046 crore. Further, they sold stock futures worth ₹138 crore and bought stock options worth ₹256 crore..

India VIX

The fear gauge India VIX fell 5.9% to 14.19.


Stock Action📊

Long build-up was seen in Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), GAIL and Titan.

Short build-up was seen in Berger Paints, HDFC, Escorts Kubota, HDFC Bank and Aditya Birla Fashion.


*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