Global jitters vs domestic resilience: Will the NIFTY50 & BANK NIFTY hold ground?

Asian markets update 7 am

The GIFT NIFTY is trading higher (+0.4%) than Thursday’s close, suggesting a flat to negative start for the Indian equities today. This follows Thursday’s decline of over 1%, which was partially offset by a rebound in global equities. Meanwhile, the Asian markets are trading mixed. Japan’s Nikkei 225 is up 0.6%, while Hong Kong’s Hang Seng index is down 1.4%.

U.S. market update

U.S. stocks rebounded on Thursday, led by gains in technology stocks, after a sell-off fuelled by Wednesday's upbeat March inflation data. The Consumer Price Index (CPI) rose 0.4% month-on-month and 3.5% year-on-year, an acceleration from February's 3.2%.

The tech-heavy Nasdaq Composite gained 1.6% and closed at 16,442, while the S&P 500 jumped 0.7% and ended at 5,199. The Dow Jones Industrial Average recovered all its losses and closed the day flat.

NIFTY50

April Futures: 22,812 (▲0.3%)

Open Interest: 2,28,667 (▲0.1%)

The NIFTY50 hit a fresh record high on 10 April and traded in a narrow range after a gap-up start. Except for the Automobiles sector which closed flat, all the major sectoral indices witnessed buying interest, with Media (+1.8%) and PSU Banks (+1.5%) topping the charts.

The NIFTY50 after a sharp dip on 10 April has failed to provide the follow through of that selling pressure. The index recently broke its all-time high and ended a month long consolidtion. Going forward, the zone marked in the red below is the immediate support along with its key daily moving averages (20 and 50). A dip below 22,500 will push the index back in the consolidation zone of 22,000-22,500.

The initial open interest (OI) build-up for the 18 April expiry shows a scattered positioning. The maximum call OI is at 23,200 and the 23,300 strikes, while the maximum put OI is at 22,700 and the 22,500 strikes. Traders are advised to monitor the Friday’s OI and price action to plan the strategies accordingly.

BANK NIFTY

April Futures: 49,019 (▲0.3%)

Open Interest: 1,42,931 (▲9.5%)

Afte a brief halt near its all-time high, the BANK NIFTY extended its upmove on 10 April and closed at record high, led by gains in SBI (+1.9%) and Kotak Mahindra Bank (+2.5%).

The BANK NIFTY formed a doji on the 9 April. We highlighted to our readers on 10 April that a break above or below this doji would provide further directional clues. On 10 April, the BANK NIFTY closed above the high of the doji, signalling a continuation of the prevailing trend. Doji patterns are neutral in nature, but a close above or below them can indicate a continuation or reversal of the ongoing trend.

Initial open interest for the 16 April BANK NIFTY expiry has significant call and put base concentrated at 49,000 strike. Since the index has broken out of its all-time high, traders are advised to keep a close eye on the build-up of open interest and key support levels and plan strategies accordingly.

FII-DII activity

In the cash market, both the Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) were net buyers on 10 April. The FIIs bought shares worth ₹2,778 crore, while the DIIs purchased shares worth ₹163 crore. To track the ratio of long and short open positions of FIIs in the index, log in to https://pro.upstox.com/ ➡️F&O➡️FII-DII Activity➡️FII Derivatives

Stock scanner

Long build-up: United Spirits, Federal Bank, SUN TV and Chambal Fertilisers

Short build-up: Cipla, Divi's Laboratories, Maruti Suzuki and HDFC Life

Under F&O ban: Balrampur Chini, Exide Industries, Hindustan Copper, Idea, India Cements, National Aluminium, Steel Authority of India and Zee Entertainment

Out of F&O ban: Bandhan Bank

To access a specially curated smartlist of most traded and active stocks, as well as the OI gainers and losers, simply log in: https://pro.upstox.com/ ➡️F&O➡️Options smartlist/Futures smartlist

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: Upstox and NSE.

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