Trade setup for 31 May: Nifty50 consolidates gains, but bulls still in control?

Blog | F&O

Asian Markets Update 7 am

Indian equities may start the day lower, as the SGX Nifty indicates. The futures contract on the Singapore Exchange is trading 46 (-0.2%) points lower. Its Asian peers are trading in the red. The Nikkei 225 declined 0.8%, while Hong Kong's Hang Seng index fell 1.7%.

US market update

US markets ended mixed as investors await the passing of the debt ceiling bill before the 5 June deadline. Dow Jones fell 0.1%, whereas NASDAQ rose 0.3%.

Index Action

June Futures @ 18,720 📈▲46 (+0.2%)
OI Contracts: 1,98,752 (+3.6%)

The Nifty50 edged higher and settled higher for the fourth consecutive session. The markets turned mildly volatile, and the upside was capped with the investors awaiting the final vote on the US debt ceiling bill agreement. Foreign portfolio investors' inflows and optimism over the upcoming domestic GDP data propelled the markets to a five-month high level.

The base for the index seems to have shifted higher to 18,400 to 18,500 levels. Bulls will look eagerly at the all-time high levels to be breached on the index.

The Nifty50 options expiring on 1 June have significant positions at 18,800 and 18,700 calls and 18,600 and 18,300 puts.

According to options data and OI analysis, the Nifty50's range for the 1st June expiry is between 18,200 and 19,000 levels. On the other hand, 18,500 and 18,800 are the immediate support and resistance levels for this week.

Bank Nifty
June Futures @ 44,496 📈▲128 (+0.2%)
OI Contracts: 84,553 (+1.7%)

The Bank Nifty continued its upward march and closed at another record high level, above 44,400. The index dipped to the 44,200 level but recovered smartly to the 44,500 level, which it has not yet been able to cross despite its second attempt in two days. The lack of participation of the heavyweights kept the upside in check for the banking index.

Among banking stocks, IDFC First Bank (+2.1%) and Bandhan Bank (+1.3%) were the top gainers. AU Small Finance Bank (-1.8%) and SBI (-0.3%) were the laggards.

The Bank Nifty's options expiring on 1 June have significant positions at the 44,500 and 45,000 calls and 44,000 and 44,500 puts.

According to options data and OI analysis, Bank Nifty's range for the 1st June expiry is between 43,200 and 45,600. On the other hand, 44,100 and 44,800 are this week's immediate support and resistance levels.

FII and DII Data💰

In the cash market, Foreign Institutional Investors (FIIs) bought shares worth ₹2,085 crore, while Domestic Institutional Investors (DIIs) sold shares worth ₹438 crore. In the derivatives market, FIIs bought index futures worth ₹240 crore and sold index options worth ₹17,237 crore. Further, they sold stock futures worth ₹653 crore and sold stock options worth ₹135 crore.

India VIX

The volatility index declined 2.3% to 12.01.

Stock Action📊

Long build-up was seen in JK Cement, RBL Bank, Power Finance Corporation, REC and Polycab. 

Short build-up was seen in Chambal Fertilisers, IRCTC, Tech Mahindra, Balkrishna Industries and Tata Steel.


Download IconDownload the Upstox App Today