Asian Markets Update @ 7 am
The SGX Nifty is trading higher by 60 (+0.3%) points from its previous close, indicating a positive start for the Nifty50 today. Major Asian markets are trading mixed. Japan's Nikkei 225 declined 0.1%, while Hong Kong's Hang Seng index advanced 0.7%.
Global Markets Update
US stocks closed lower as investors remained cautious ahead of the Fed's interest rate decision on Wednesday and the release of quarterly results from tech giants Apple, Amazon and Alphabet.
The Dow Jones snapped its six-day winning streak and settled 0.7% lower, while S&P 500 declined 1.3%. The technology-heavy Nasdaq Composite fell 1.9%.
Index Action
Nifty50
February Futures: 17,742📈▲ 55 (0.3%)
OI Contracts: 2,09,517 (-4.3%)
After two days of sell-off, the Nifty50 index ended a volatile day higher. The index swung 300 points during the day but ended the session with a modest gain of 44 points (0.2%). It is currently trading below its short-term daily moving averages such as the 20, 50 and 100. The next important support is at the 200 DMA, which is located near the 17,300 level.
Among major sectoral indices, Oil & Gas (-3.5%) and FMCG (-0.6%) declined the most. IT (+1.1%) and PSU Bank (+0.5%) were the top gainers.
Nifty50’s options contracts expiring on 2 February have sizable positions at 18,000 and 17,800 call options and 17,500 and 17,300 put options.
As per options data and OI analysis, the broad range for the Nifty50's February expiry is between 16,800 and 18,500 levels. On the other hand, 17,300 and 17,900 are the critical levels to watch for the current week.
Bank Nifty
February Futures: 40,751 📈▲90 (0.2%)
OI Contracts: 1,05,522 (8.7%)
The Bank Nifty plunged to 39,400 in the second half of the day, but recovered over 1000 points from the intra-day low to close in the green. Among banking stocks, IndusInd Bank (-2.4%) and SBI (-0.3%) were the biggest laggards, while IDFC First Bank (+1.2%) and Bank of Baroda (+1.0%) were the biggest gainers.
Bank Nifty’s options contracts expiring on 2 February have sizable positions at 41,000 and 41,500 call options and 39,500 and 40,000 put options.
As per options data and OI analysis, the broad range for the Bank Nifty February expiry is between 39,500 and 41,500 levels. On the other hand, 39,900 and 41,000 are the critical levels to watch for the current week.
FII and DII Data💰
The Foreign Institutional Investors (FIIs) sold shares worth ₹6,792 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹5,512 crore in the cash market. In the derivatives market, FIIs sold index futures worth ₹1,607 crore and bought index options worth ₹6,353 crore. Further, they bought stock futures worth ₹554 crore and bought stock options worth ₹233 crore.
India VIX
The India VIX, which measures the implied volatility of Nifty50 options, rose 2.2% to 17.71.
Stock Action📊
Long build-up was seen in NTPC, Adani Enterprises, ICICI Bank, ACC and Polycab.
Short build-up was seen in Power Grid, Exide Industries, IndusInd Bank, GAIL and Glenmark Pharma.
Under F&O Ban: Ambuja Cement.
*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.
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