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Trade setup for Jan 13: FIIs drag down the markets

Asian Markets Update @ 7 am

The SGX Nifty was trading higher, up by 0.3% or 64 points from its previous close, suggesting a positive start for the Nifty50 today. Major Asian markets are trading mixed. Nikkei 225 in Japan declined 1.2%, while Hong Kong's Hang Seng index advanced 0.4%.

Global Markets Update

US stocks extended the winning streak and closed higher on Thursday. The move comes after the annual inflation rate fell in December to 6.5% over last year and declined 0.1% over the previous month.

The Dow Jones (+0.6%) and S&P 500 (+0.3%) extended their winning streak for the third day. The Nasdaq Composite (+0.6%) advanced for the fifth day in a row.


Index Action

Nifty50
January Futures: 17,924 📉38 (-0.2%)

The Nifty50 index declined for the third consecutive day and ended the volatile session marginally lower on the weekly expiry day.

Among the Nifty sectoral indices, Media (+0.8%) and IT (+0.4%) were the top gainers, while Oil & Gas (-1.0%) and Bank (-0.3%) were the top losers.

Nifty50’s options contracts expiring on 19 January have sizable positions at 18,000 and 17,900 call options and 17,900 and 17,800 put options.

As per options data and OI analysis, the broad range for the Nifty50 is between 17,200 and 18,600 levels. On the other hand, 17,700 and 18,000 are the critical levels to watch for the next week.

Bank Nifty
January Futures: 42,230 📉163 (-0.3%)

The Bank Nifty index remained choppy throughout the day and closed the volatile session lower. The index's breadth favoured bears, with eight stocks declining and four advancing.

Among banking stocks, AU Small Finance Bank (+0.9%) and HDFC Bank (+0.5%) advanced the most, while Bandhan Bank (-2.1%) and Axis Bank (-1.5%) witnessed selling pressure.

Bank Nifty’s options contracts expiring on 19 January have sizable positions at 42,000 and 43,000 call options and 42,000 and 41,000 put options.

As per options data and OI analysis, the broad range for the Bank Nifty is between 41,000 and 43,200 levels. On the other hand, 41,700 and 42,700 are the critical levels to watch for the next week.


FII and DII Data**💰

The Foreign Institutional Investors (FIIs) sold shares worth ₹1,662 crore, while Domestic  Institutional Investors (DIIs) bought shares worth ₹2,127 crore in the cash market. In the last five trading sessions, the FIIs have offloaded shares worth ₹10,084 crore in the cash market.

In the derivatives market, FIIs sold index futures worth ₹555 crore and bought index options worth ₹11,888 crore. Further, they sold stock futures worth ₹1,415 crore and sold stock options worth ₹74 crore.

India VIX

The India VIX, which measures the implied volatility of Nifty50 options, fell 1.0% to 15.28.


Stock Action📊

Long build-up was seen in Navin Fluorine, PVR, Cummins India, HCL Tech and Larsen & Toubro.

Short build-up was seen in Divi’s Lab, Reliance Industries, Granules, Dixon Technologies and Kotak Mahindra Bank.

Under F&O Ban: GNFC and Indiabulls Housing 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.

Categories: F&O