Asian Markets Update @ 7 am
The SGX Nifty is trading 26 points (+0.1%) higher compared to its last close, indicating a flat to positive start for the Nifty50 today. Major Asian markets are trading mixed. Japan's Nikkei 225 is down 0.5%, while Hong Kong's Hang Seng is up by 0.9%.
Global Market Update
US equities surged on Friday with an upbeat result posted by Apple, a rebound in regional banking shares and resilient jobs data. The Dow Jones rose by 1.6% to close at 33,674. Meanwhile, the S&P 500 gained 1.8% to settle at 4,136, and the Nasdaq Composite jumped 2.2%, closing at 12,235.
Index Action
Nifty50
May Futures @ 18,130 📉▼164 (-0.9%)
OI Contracts: 2,02,746 (+4.4%)
The Nifty50 slipped sharply on Friday, retracing from the 2023 high level of 18,250. Aggressive fall in most sectors, led by Banking and Financial Services, dragged the index lower by over a per cent. While strong selling by domestic institutional investors kept the pressure on the index, the bulls have benefitted so far from the sharp fall in crude oil prices and the steady return of foreign portfolio investors.
In the week ahead, investors will be watching inflation data from India and the US, upcoming earnings announcements and the outcome of the Karnataka elections to gauge market direction.
Sectorally, Auto (+0.4%) and FMCG (+0.2%) were the top gainers, whereas Private Banks (-2.8%) and Financial Services (-2.3%) were the laggards.
The Nifty50 options expiring on 11 May have significant positions at 18,200 and 18,300 calls and 18,200 and 18,100 puts.
According to options data and OI analysis, the Nifty50's long range for the 25th May expiry is between 17,600 and 18,600. On the other hand, 17,900 and 18,400 is the short-term range for this week.
Bank Nifty
May Futures @ 42,720 📉▼937 (-2.1%)
OI Contracts: 92,283 (-6.5%)
The Bank Nifty took a big knock after shares of HDFC Bank fell. This comes after MSCI announced a change of rules for the inclusion of the merged HDFC twin entity led to outflows in both stocks. With 11 out of the 12 stocks settling in red, the Bank Nifty was among the worst-performing indices of the day, dropping nearly 2.5%.
Among banking stocks, ICICI Bank (+0.5%) was the only gainer, while Federal Bank (-8.3%) and HDFC Bank (-5.9%) were the laggards.
The Bank Nifty's options expiring on 11 May have significant positions at the 43,000 and 43,500 calls and 43,000 and 42,500 puts.
According to options data and OI analysis, Bank Nifty's range for the 25th May expiry is between 41,500 and 43,800. On the other hand, 41,900 and 43,300 is the short-term range for this week.
FII and DII Data💰
The Foreign Institutional Investors (FIIs) bought shares worth ₹777 crore, while Domestic Institutional Investors (DIIs) sold shares worth ₹2,198 crore in the cash market. In the derivatives market, FIIs sold index futures worth ₹804 crore and bought index options worth ₹20,290 crore. Further, they sold stock futures worth ₹2,126 crore and sold stock options worth ₹362 crore.
India VIX
The fear gauge India VIX rose 4.8% to 12.30.
Stock Action📊
Long build-up was seen in MRF, Astral, Apollo Tyres, IEX and ITC.
Short build-up was seen in Federal Bank, Dabur, HDFC Bank, IndusInd Bank and Vedanta.
Under F&O Ban: GNFC and Manappuram Finance.
*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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