Asian Markets Update 7 am
Indian equities may start the day flat, as the SGX Nifty indicates. The futures contract on the Singapore Exchange is trading 17 points lower. However, its Asian peers are trading in the green. The Nikkei 225 advanced 0.1%, while Hong Kong's Hang Seng index rose 0.3%.
US market update
U.S. stocks closed lower on Friday after lawmakers paused negotiations over the debt ceiling. However, the talks later resumed after market hours. ICYMI, the U.S. could default on its debts as early as June 1, according to Treasury Secretary Janet Yellen.
The Dow Jones shed 0.3%, the S&P 500 lost 0.1%, and the Nasdaq 100 dropped 0.2%. On a weekly scale, all three indices closed higher, with Nasdaq gaining the most over 3%.
Index Action
Nifty50
May Futures @ 18,231 📈▲55 (+0.3%)
OI Contracts: 2,11,046 (-2.2%)
The Nifty50 index snapped a three-week winning streak and ended the week negatively. Mixed global cues and concerns over the ongoing U.S. debt ceiling negotiations weighed on sentiment. However, positive earnings and buying by foreign investors helped limit the losses.
In the week ahead, traders will keep an eye on the resolution of the U.S. debt ceiling issue, FOMC minutes, and the U.K.'s consumer price inflation data.
The Nifty50 options expiring on May 25 have significant positions at 18,200 and 18,500 calls and 18,200 and 18,000 puts.
According to options data and O.I. analysis, the Nifty50 range for the 25th May expiry is between 18,000 and 18,500. On the other hand, 18,100 and 18,350 are the immediate support and resistance levels for this week.
Bank Nifty
May Futures @ 43,990 📈▲214 (+0.4%)
OI Contracts: 78,976 (-4.7%)
The Bank Nifty outperformed the Nifty50 and closed the week flat with a positive bias. Strong earnings from banking and financial stocks supported the index. The index defended the 43,500 mark and continued its consolidation near its all-time high.
Among banking stocks, Punjab National Bank (+1.6%) and Axis Bank (+1.0%) were the top gainers. Bandhan Bank (-2.4%) and Federal Bank (-0.4%) were the top losers.
The Bank Nifty's options expiring on May 25 have significant positions at the 44,000 and 44,500 calls and 43,000 and 44,000 puts.
According to options data and O.I. analysis, Bank Nifty's range for the 25th May expiry is between 43,400 and 44,500. On the other hand, 43,400 and 44,150 are this week's immediate support and resistance levels.
FII and DII Data💰
In the cash market, the Foreign Institutional Investors (FIIs) sold shares worth ₹113 crore, while the Domestic Institutional Investors (DIIs) bought shares worth ₹1,071 crore. In the derivatives market, FIIs sold index futures and options worth ₹565 crore and ₹5,630 crore. Further, they bought stock futures worth ₹1,952 crore and bought stock options worth ₹436 crore.
India VIX
The volatility index further slipped and closed at 12.30, down 3.8%. In recent weeks, it has rallied back above 13 after falling close to historic lows. All in all, it has been in a range of 11-13 for seven weeks now.
Stock Action📊
Long build-up was seen in Birlasoft, Persistent Systems, Mphasis, DLF and Adani Ports.
Short build-up was seen in Siemens, Mahanagar Gas, Muthoot Finance, BHEL and Zydus Lifesciences.
Under F&O Ban: ABFRL, Balrampur Chini Mills, Delta Corp, GNFC, Manappuram Finance and L&T Finance Holdings.