Even as US stocks settled flat in overnight trade, a ‘long-legged Doji’ formation on Nifty’s daily charts ahead of expiry of futures and options series contracts hints at a likely rise in market volatility on Tuesday.
Singapore trading sets stage for negative start
Nifty futures on the Singapore Stock Exchange were trading 20.50 points, or 0.19 per cent, lower at 10,601.50, indicating a negative start for the Nifty50.
Nifty50 forms 'Long Legged Doji'
Nifty50 on Monday kissed the 10,600 mark but failed to close above the psychological level. The index formed a 'long-legged Doji' candle on the daily chart, suggesting struggle for upper hand between the bulls and bears ahead in the F&O expiry week. “For the last five consecutive sessions, the index is consolidating within 10,600-10,500 levels. A breakout on either side range will indicate further direction,” Rajesh Palviya, Head Technical & Derivatives Analyst at Axis Securities said. < ..
Market-wide rollover of F&O positions stood at 21 per cent till Monday, which was in line with the average rollovers seen by this time in the last three F&O series. Nifty futures rollover stood at 18 per cent which were lower than the average rollovers of 22 per cent in the last three series.
F&O data suggests further upside
Options data suggests an immediate trading range in between 10,480 and 10,700 said Chandan Taparia of Motilal OswalNSE -0.08 % Securities. “Small Put writing has been observed at 10,350 and 10,500 strikes while Call unwinding is seen at all the immediate strike prices, which is providing room for further up move," the expert said.
Q4 results today
Bharti Airtel, IDFC Bank, ICICI Prudential Life, Oberoi Realty, Persistent, RaymondNSE -0.26 %, TRF, DCM Shriram and GIC Housing Finance will be among companies that will report their quarterly earnings on Tuesday.
Asian stocks mixed
Asian stocks were trading mixed on Tuesday, as a deluge of US government debt this week and the specter of inflation and a higher fiscal deficit drove U.S. borrowing costs near four-year highs. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.25 per cent. Japan's Nikkei rose 0.7 per cent thanks to fall in the yen, Reuters reported.
US stocks end flat
The Dow Jones Industrial Average index fell 14.25 points, or 0.06 per cent, to 24,448.69. The S&P500 index gained 0.15 points, or 0.01 per cent, to 2,670.29 and the Nasdaq Composite index dropped 17.53 points, or 0.25 per cent, to 7,128.60.
NSE announces 46 stocks for physical settlement
The National Stock Exchange of India on Monday announced a list of 46 stocks which are liable to be physically settled. These include Adani Power, Can Fin Homes, IDBI Bank, Jaiprakash Associates, Godrej Industries, Just Dial, Oil India and PVR. Other stocks include United Breweries, Reliance Communications, IFCI and Allahabad Bank. NSE said all new expiry month contracts issued in these securities after expiry of the April contracts, i.e. July expiry onwards, will be physically settled.
DIIs buy Rs 387 cr worth of equities
Foreign portfolio investors (FPIs) sold Rs 259 crore worth of domestic stocks on Monday, provisional data available with BSE suggested. DIIs were net buyers to the tune of Rs 387 crore, data suggested.
