Asian Markets Update @ 7 am
The SGX Nifty is trading lower by 28 (-0.1%) points from its previous close, indicating a flat to negative start for the Nifty50 today. Major Asian markets are trading mixed. Japan's Nikkei 225 gained 0.8%, while Hong Kong's Hang Seng index fell 1.9%.
Global Market Update
US stocks fell on Friday as strong payrolls data dampened hopes of a pause in Fed rate hikes and pressure from leading tech stocks soured the sentiment.
The Dow Jones slipped 0.3%, while S&P 500 fell 1.1%. The technology-heavy Nasdaq Composite dipped 1.5%.
Index Action
Nifty50
February Futures @ 17,877📈▲191 (+1.0%)
OI Contracts: 2,00,544 (-6.3%)
Amid positive global and domestic cues, the Nifty50 rallied from 17,600 to close near the day's high. All the major sectors participated in the rally and the index climbed above the resistance zone of 17,800 to close in green.
Among the major sectoral indices, Pharma (-0.9%) and Oil & Gas (-0.8%) declined the most. PSU Bank (+3.0%) and Financial Services (+2.3%) were the top gainers.
The Nifty50 options contracts expiring on 9 February have significant positions at 18,000 and 18,500 calls and 17,500 and 17,700 puts.
As per options data and OI analysis, the broad range for the Nifty50’s February expiry is between 17,400 and 18,300 levels. On the other hand, 17,700 and 18,000 are the critical levels to watch for the current week.
Bank Nifty
February Futures @ 41,684 📈▲747 (+1.8%)
OI Contracts: 90,969 (-8.4%)
The Bank Nifty rose over 2% to close near the day's high. It slipped initially after a positive start but rebounded sharply from the day’s low and closed just below the 41,500 mark.
Except for IDFC First Bank (-1.3%), all the other 11 stocks of the banking index ended in the green. Bank of Baroda (+6.2%) and HDFC Bank (+3.4%) advanced the most.
The Bank Nifty’s options contracts expiring on 9 February have significant positions at 41,500 and 42,000 calls and 40,500 and 40,000 puts.
As per options data and OI analysis, the broad range for the Bank Nifty February expiry is between 40,100 and 42,900 levels. On the other hand, 40,700 and 42,300 are the critical levels to watch for the current week.
FII and DII Data**💰
The Foreign Institutional Investors (FIIs) sold shares worth ₹932 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹1,264 crore in the cash market. In the derivatives market, FIIs bought index futures worth ₹2,344 crore and sold index options worth ₹15,673 crore. Further, they bought stock futures worth ₹1,041 crore and sold stock options worth ₹227 crore.
India VIX
The India VIX, which measures the implied volatility of Nifty50 options, fell 8.4% to 14.39.
Stock Action📊
Long build-up was seen in M&M Financial Services, Ashok Leyland, Firstsource Solutions, Canara Bank and Titan.
Short build-up was seen in Divi’s Labs, JK Cement, Birlasoft, Deepak Nitrite and Hindalco.
Under F&O Ban: Adani Ports.
*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.