Asian Markets Update @ 7 am
The SGX Nifty was trading higher by 21 (+0.1%) points from its previous close, suggesting a positive start for the Nifty50 today. Major Asian markets are trading mixed. Nikkei 225 in Japan declined 1.0%, while Hong Kong's Hang Seng index advanced 0.6%.
Global Markets Update
US stocks closed higher on Friday after release of the earnings report from banking heavyweights. Shares of JPMorgan and other banks advanced following their results and started the earnings season.
The Dow Jones rose +0.3% and closed at 34,302. The S&P 500 advanced +0.4% and ended at 3,999. The Nasdaq Composite was up +0.7% and closed at 11,079.
Index Action
Nifty50
January Futures: 18,022 📈▲103 (+0.5%)
The Nifty50 index snapped the three-day losing streak and closed Friday’s session higher. The index formed the Doji candle on weekly charts, indicating the indecisiveness among the traders.
Among the sectoral indices, PSU Bank (+1.35%) and Metal (+1.27%) were the top gainers, while Pharma (-0.02%) and FMCG (-0.02%) 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 17,300 and 18,600 levels. On the other hand, 17,800 and 18,200 are the critical levels to watch for the current week.
Bank Nifty
January Futures: 42,483 📈▲270 (+0.6%)
After an initial blip and sharp swings, the Bank Nifty index regained strength and posted a positive close on Friday. On weekly charts, the index formed the Doji pattern, signifying indecision.
Today, the markets will react to the HDFC Bank’s third-quarter results. The bank's net profit surged 18.5% YoY on the back of higher net interest income and lower provisioning for bad loans.
Bank Nifty’s options contracts expiring on 19 January have sizable positions at 42,500 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 43,300 levels. On the other hand, 41,900 and 42,700 are the critical levels to watch for the current week.
FII and DII Data**💰
The Foreign Institutional Investors (FIIs) sold shares worth ₹2,422 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹1,953 crore in the cash market. In the derivatives market, FIIs bought index futures worth ₹1,507 crore and bought index options worth ₹305 crore. Further, they bought stock futures worth ₹1,156 crore and sold stock options worth ₹8 crore.
India VIX
The India VIX, which measures the implied volatility of Nifty50 options, fell 5.3% to 14.46.
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 Laboratories, 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.