Trade setup for 27 March: Choppiness to continue?

Asian Markets Update @ 7 am 

The SGX Nifty is trading 113 points (+0.6%) higher compared to its last close, indicating a positive start for the Nifty50 today. Major Asian markets are trading mixed. Japan's Nikkei 225 rose 0.2%, while Hong Kong's Hang Seng Index declined 0.8%.

Global Market Update

US stocks shrugged off global banking concerns to close higher on Friday, posting a second weekly gain. The Dow Jones rose 0.4% to end at 32,237. The S&P 500 advanced 0.5% to 3,970, while the Nasdaq Composite rose 0.3% and finished at 11,823.

Index Action

Nifty50
March Futures @ 16,938 📉▼149 (-0.8%)
OI Contracts: 2,23,374 (-4.0%)

The Nifty50 closed lower on Friday, extending its losing streak for the third consecutive week, following a hike in STT rates on futures and options and ongoing concerns over the global banking sector.

Going forward, the focus will now shift to the developments relating to Deutsche Bank and to the GDP figures in the US.

All major sectoral indices ended in the red with Metal (-2.7%) and PSU Bank (-2.1%) being the top losers.

The Nifty50 options expiring on 29 March have significant positions at 17,100 and 17,200 calls and 17,000 and 16,500 puts.

According to options data and OI analysis, the Nifty50's long range for the 27th April expiry is between 16,300 and 17,600. On the other hand, 16,700 and 17,200 is the short-term range for this week.

Bank Nifty
March Futures @  39,383 📉▼320 (-0.8%)
OI Contracts: 82,870 (-13.3%)

Bank Nifty found resistance near its 200 DMA and fell over half a percent on Friday, led by the ongoing sell-off in PSU banks.

Among banking stocks, except Kotak Mahindra Bank (+0.7%), all the other 11 stocks of the index ended in red with Bandhan Bank (-4.4%) and Punjab National Bank (-2.8%)  being the biggest laggards.

The Bank Nifty's options expiring on 29 March have significant positions at the 40,000 and 39,500 calls and 39,500 and 39,000 puts.

According to options data and OI analysis, Bank Nifty's range for the 27th April expiry is between 37,300 and 41,000. On the other hand, 38,600 and 40,200 is the short-term range for this week.

FII and DII Data💰

The Foreign Institutional Investors (FIIs) sold shares worth ₹1,720 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹2,555 crore in the cash market. In the derivatives market, FIIs bought index futures worth ₹213 crore and bought index options worth ₹3,732 crore. Further, they sold stock futures worth ₹388 crore and bought stock options worth ₹149 crore.

India VIX 

The fear gauge India VIX rose 5.1% to 15.24.

Stock Action📊

Long build-up was seen in Ramco Cements, Granules, Siemens, Indiamart Intermesh and Dalmia Bharat.

Short build-up was seen in Metropolis, Vedanta, L&T Finance, ONGC and Tata Steel.

Under F&O Ban: HAL and Indiabulls Housing Finance

*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.