Nifty and Bank Nifty Futures:
Nifty Futures: The premium on Nifty futures has increased significantly to 92 points, the highest in the last four trading sessions, indicating a bullish sentiment despite a slight decline in the futures contract itself. The open interest (OI) in Nifty futures saw a 2.3% drop.
Bank Nifty Futures: Similarly, the premium for Bank Nifty futures surged to 255 points from 207 points previously. The Bank Nifty futures ended 0.2% higher, while the spot index rose 0.1%. OI decreased by 1.6%.
Technical Levels for Nifty:
Support: The 25,100-25,000 range is anticipated to act as strong support.
Resistance: Key resistance levels are seen at 25,250-25,300, and further at 25,330-25,350.
Options Market Insights:
Nifty Options: The Nifty options market shows a bearish bias with increased call writing, indicating potential downside pressure. Significant open interest is at the 25,150 Put and the 25,200 Call. The Put-Call Ratio (PCR) has dropped from 0.82 to 0.74, reflecting caution.
Bank Nifty Options: Notable open interest is observed at the 51,500 Call and the 51,000 Put. Active trading is centered around 51,500-51,700 Calls and 51,200-51,300 Puts. The PCR has declined from 0.88 to 0.78, suggesting a shift towards a sideways to bearish sentiment. The Max Pain Point at 51,500 is crucial.
FII and DII Activity:
Foreign Institutional Investors (FIIs): Net sold 10,380 contracts of index futures for Rs 670.19 crore. They were net sellers in Nifty futures and Bank Nifty futures but net buyers in MidCap Nifty futures. The FIIs long-short ratio in index futures stands at 2.1:1.
Domestic Institutional Investors (DIIs): Net sold 15,491 contracts of index futures. Their long-short ratio in index futures is 3:2, indicating a bearish stance.
Stocks with Notable Activity:
Long Build-Up: Syngene International saw a 3% rise in stock price with a 15% jump in OI. Muthoot Finance, GMR Infra, and IPCA Labs also saw long positions build-up.
Short Build-Up: Max Financial Services experienced a 56% increase in OI with a 1.4% drop in stock price, suggesting a potential short build-up. Chambal Fertilisers, Reliance Industries, and Bata India also showed rising OI with falling stock prices.
F&O Ban Period:
Stocks Under Ban: Aditya Birla Fashion & Retail, Balrampur Chini, Bandhan Bank, Biocon, Chambal Fertilisers, Hindustan Copper, and RBL Bank.
Summary: The market is experiencing mixed signals with increased premiums in Nifty and Bank Nifty futures but caution in the options market. The upcoming U.S. jobs report could influence market movements significantly. Investors should watch key technical levels and be mindful of the current options market sentiment as well as institutional trading patterns.
