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Trade setup for 7 August: NIFTY50 above 19,500. All eyes are on the RBI meeting.

Asian Markets Update 7 am

Indian equities may start the day positive, as the GIFT Nifty indicates. The futures contract on the NSE International Exchange (NSE IX) is trading 29 (+0.1%) points higher. Its Asian peers are trading lower. The Nikkei 225 declined 0.3%, while Hong Kong's Hang Seng index fell 0.5%.

US market update

US markets ended lower after a sharp sell-off in Apple and mixed July jobs report. Dow Jones declined 0.4%, while NASDAQ fell 0.3%.


Index Action

NIFTY50
August Futures @ 19,573 📈▲105 (+0.5%)
OI Contracts: 2,28,074 (+3.7%)

The Nifty50 halted its three-day fall on Friday and ended with nearly three-quarters of a per cent gains. The index rebounded from the 19,450 level and reclaimed the 19,500 level. Domestic institutional inflows and gains in IT and Pvt banks contributed to the rise of the index.

Among the major companies, Emami and Godrej Consumer Products will announce their earnings today.

The Nifty50 options expiring on 10 August have significant positions at 19,600 and 20,000 calls and 19,400 and 19,500 puts.

According to options data and OI analysis, the Nifty50 range for the 31st August expiry is between 19,000 and 19,900. On the other hand, 19,300 and 19,700 are this week's immediate support and resistance levels.

BANK NIFTY

August Futures @ 44,970 📈▲248 (+0.5%)
OI Contracts: 1,15,808 (-3.0%)

The Bank Nifty took support near its 50 DMA and closed higher on Friday. The banking index crossed the 45,000 level during the day but could not sustain itself. The index ended with a strong breadth of 10 advances to 2 declines.

IndusInd Bank (+3.3%) and Federal Bank (+1.8%) were the top gainers among banking index stocks. Bank of Baroda (-1.0%) and SBI (-2.9%) were the top laggards.

The Bank Nifty's options expiring on 10 August have significant positions at the 45,000 and 45,500 calls and 44,500 and 45,000 puts.

According to options data and OI analysis, Bank Nifty's range for the 31st August expiry is between 43,500 and 46,000. On the other hand, 44,500 and 45,400 are the immediate support and resistance levels for this week.

FINNIFTY

August Futures @ 20,079 📈▲117 (+0.5%)
OI Contracts: 1,517 (-14.68%)

The FINNIFTY continues to trade below its 20 DMA and below the psychologically crucial level of 20,000. The FINNIFTY's options expiring on 8 August have significant positions at the 20,300 and 20,200 calls and 19,500 and 19,900 puts.

According to options data and OI analysis of contracts expiring on 8 August, FINNIFTY's immediate support and resistance levels are at 19,800 and 20,200.

FII and DII Data**💰

In the cash market, the Foreign Institutional Investors (FIIs) sold shares worth ₹556 crore, while the Domestic Institutional Investors (DIIs) bought shares worth ₹366 crore. In the derivatives market, FIIs bought index futures worth ₹1,104 crore and sold index options worth ₹1,909 crore. Further, they bought stock futures worth ₹1,954 crore and sold stock options worth ₹313 crore.

India VIX

The volatility index fell 5.5% and settled at 10.57.


Stock Action📊

The long build-up was seen in LIC Housing Finance, MRF, Astral, Lupin and Cipla.

The short build-up was seen in SBI, Cummins, Metropolis, Mahanagar Gas and BHEL.

Under F&O Ban: GNFC, Hindustan Copper, Indiabulls Housing Finance and Piramal Enterprises.


*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.

Categories: F&O