Asian Markets Update 7 am
Indian equities may start the day flat to negative, as indicated by the GIFT Nifty. The futures contract on the NSE International Exchange (NSE IX) is trading 1 (-0.01%) points higher. Its Asian peers are trading mixed. The Nikkei 225 gained 0.6% while Hang Seng fell 0.5%.
US Market Update
US markets ended lower after bond yields and oil prices climbed. Dow Jones declined 0.5% while NASDAQ fell 0.08%.
Index Action
September Futures @ 19,650 📈▲41 (+0.2%)
OI Contracts: 1,92,795 (+0.7%)
The Nifty50 consolidated after a positive start and ended the day in green. With its third consecutive higher close, the index broke out of its near one-month consolidation range and ended above 19,550. Investors will keenly await the domestic inflation data next week and Fed policy update later this month.
The Nifty50 options expiring on 7 September have significant positions at 19,600 and 19,700 calls and 19,500 and 19,400 puts.
According to options data and OI analysis, the Nifty50's range for the 28th September expiry is between 19,000 and 20,000 levels. On the other hand, 19,400 and 19,700 are the immediate support and resistance levels for this week.
September Futures @ 44,751 📉▼30 (-0.07%)
OI Contracts: 1,32,585 (-2.3%)
Bank Nifty started on a positive note but faced resistance at higher level. The banking index retraced from 44,700 level and ended marginally lower. The index is consolidating between its 20 DMA and 50 DMA.
Among banking index stocks, Federal Bank (+1.1%) and IDFC First Bank (+0.7%) were the top gainers. Bandhan Bank (-0.6%) and HDFC Bank (-0.6%) were the laggards.
The Bank Nifty's options expiring on 6 September have significant positions at the 44,600 and 45,000 calls and 44,000 and 44,500 puts.
According to options data and OI analysis, Bank Nifty's range for the 28th September expiry is between 43,400 and 45,800. On the other hand, 44,100 and 44,800 are the immediate support and resistance levels for this week.
Nifty Financial Services
September Futures @ 19,888 📉▼22 (-0.1%)
OI Contracts: 1,721 (+15.5%)
The FINNITY ended the day in red; near its 20 DMA. The FINNIFTY’s options expiring on 12 September have significant positions at the 19,800 and 20,000 calls and 19,800 and 19,700 puts.
According to options data and OI analysis of contracts expiring on 5th September, FINNIFTY’s immediate support and resistance levels are at 19,700 and 20,100.
FII and DII Data
In the cash market, the Foreign Institutional Investors (FIIs) sold shares worth ₹1,725 crore, while the Domestic Institutional Investors (DIIs) bought shares worth ₹1,077 crore. In the derivatives market, FIIs bought index futures worth ₹269 crore and bought index options worth ₹3,228 crore. Further, they sold stock futures worth ₹1,866 crore and sold options worth ₹300 crore.
India VIX
The volatility index declined 1.2% and settled at 10.82.
Stock Action
Long build-up was seen in Glenmark Pharma, Can Fin Homes, IEX, Aarti Industries and ABFRL.
Short build-up was seen in Delta Corp, SBI Life, M&M Finance, Apollo Tyres and SBI Cards.
Under F&O Ban: Balrampur Chini, BHEL, Delta Corp, Hindustan Copper, Indiabulls Housing Finance and India Cements.
*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.