Trade setup for 3 October: Markets remain indecisive. All eyes on the RBI meet this week. 

Asian Markets Update 7 am

The Indian markets may start the day negative to flat, as indicated by the GIFT NIFTY. Meanwhile, Nikkei 225 and Hang Seng are down 1.3% and 2.8%, respectively. 

US Market Update

US markets were a mixed bag on Monday. Dow Jones declined 0.2%, while NASDAQ was up 0.6%.

Index Action

NIFTY50 

19,638 ▲ 114 (+0.5%)

Max Pain: 19,650

PCR: 0.8  

5 October (Thursday) Expiry

The NIFTY50 index closed flat on a weekly basis despite the rise in volatility. FII (foreign institutional investors) remained net sellers throughout the week. Meanwhile, this week, traders will be monitoring the RBI interest rate decision, which will be announced on Friday. 

According to the options data for the 5 October expiry, the max call open interest (OI) build-up is at 19,800. It means that this level could act as a resistance. On the other hand, the significant OI build-up in puts is at the 19,500 level – which could act as a support. 

BANK NIFTY

44,584 ▲ 283 (+0.6%)

Max Pain: 44,600

PCR: 0.9

4 October Expiry

Like the NIFTY50 index, BANK NIFTY also witnessed sharp volatility last week. 

Meanwhile, as per the options data, sizable call positions can be seen at the 45,000 level, which can act as a resistance. And, on the lower side, based on significant OI build-up in puts, the index can get support at the 44,000 level. 

India VIX

The volatility index declined 10.6% to 11.4. 

Stock Action

Long build-up: Axis Bank, L&T, Hindalco, NTPC and Apollo Hospitals 

Short build-up: LTIM, Adani Enterprises, Infosy and HCL Tech 

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: Upstox and NSE. 

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