Asian Markets Update 7 am
Indian equities may start the day positive, as the GIFT Nifty indicates. The futures contract on the NSE International Exchange (NSE IX) is trading 41 (+0.2%) points higher. Its Asian peers are trading lower. The Nikkei 225 declined 1.0%, while Hong Kong's Hang Seng index fell 0.1%.
US market update
US markets ended lower as Fitch ratings downgraded and the tech stock slump weighed on investor sentiment. Dow Jones declined 0.9%, while NASDAQ fell 2.1%.
Index Action
NIFTY50
August Futures @ 19,585 📉▼227 (-1.1%)
OI Contracts: 2,25,396 (+4.4%)
Following the Fitch downgrade of the US government's credit rating, the Nifty50 broke down from its consolidation zone and tanked sharply lower on Wednesday. Despite a 100-point recovery from the day's low point, the index fell more than 1% and settled below its 20 DMA for the first time since late June.
Bharti Airtel, Lupin and Sun Pharma will announce their earnings among the major companies today.
The Nifty50 options expiring on 3 August have significant positions at 19,800 and 19,700 calls and 19,500 and 19,400 puts.
According to options data and OI analysis, the Nifty50 range for the 31st August expiry is between 19,000 and 19,900. On the other hand, 19,400 and 19,650 are this week's immediate support and resistance levels.
BANK NIFTY
August Futures @ 45,130 📉▼617 (-1.3%)
OI Contracts: 1,32,884 (+1.1%)
The Bank Nifty's fall was sharper compared to Nifty50, and the banking index also closed below its 20 DMA. The index rebounded nearly 300 points from the 44,700 level but closed by the psychologically important mark of 45,000.
Among banking index stocks, AU Small Finance Bank (+0.5%) was the top gainer. Punjab National Bank (-3.0%) and Bank of Baroda (-3.1%) were the top laggards.
The Bank Nifty's options expiring on 3 August have significant positions at the 46,000 and 45,500 calls and 45,000 and 44,500 puts.
According to options data and OI analysis, Bank Nifty's range for the 31st August expiry is between 43,800 and 46,200. On the other hand, 44,600 and 45,300 are this week's immediate support and resistance levels.
FII and DII Data**💰
In the cash market, the Foreign Institutional Investors (FIIs) sold shares worth ₹1,877 crore, while the Domestic Institutional Investors (DIIs) sold shares worth ₹2 crore. In the derivatives market, FIIs sold index futures worth ₹44 crore and bought index options worth ₹5,122 crore. Further, they sold stock futures worth ₹858 crore and sold stock options worth ₹83 crore.
India VIX
The volatility index advanced 9.7% and settled at 11.28, above its 20 DMA.
Stock Action📊
The long build-up was seen in PVR Inox, Laurus Labs, Berger Paints, Nestle and Marico.
The short build-up was seen in BHEL, Canara Bank, Bosch, GAIL and Vedanta.
Under F&O Ban: GNFC, Hindustan Copper, Indiabulls Housing Finance and Piramal Enterprises.
*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.