Pre-market action: Here's the trade setup for today's session

Equity markets had a positive start to the week on Monday but soon witnessed profit booking amid weak global cues and SEBI warning over midcap-smallcap rally.

“Going ahead, we expect the consolidation to continue in the market with large bouts of volatility. We recommend switching to large caps where the risk-reward is more favourable,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal.

Here’s breaking down the pre-market actions:

STATE OF THE MARKETS

Tech View: The short-term trend of Nifty seems to have turned down and the next lower levels to be watched are around 22100-22050 levels. Intraday resistance is at 22525, Nagaraj Shetti of HDFC Securities said.
India VIX: India VIX, which is a measure of the fear in the markets, rose 2.81% to settle at 14 levels.

Stocks in F&O ban today

1) ZEE

2) ABFRL

3) Manappuram

4) MGL

5) SAIL

6) Tata Chemicals

7) Hindustan Copper

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit

FII/DII action
Foreign portfolio investors were net buyers at Rs 4,212 crore for the fourth straight day on Monday. DIIs too bought shares worth Rs 3,238 crore.

Rupee
The rupee declined by 8 paise to settle at 82.75 against the US dollar on Monday, tracking bearish equity markets.

FII data
The net short of FIIs increased from Rs 33,795 crore on Thursday to Rs 34,975 crore on Monday.

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