03rd July' 2020 (Evening plus weekend)

03rd July' 2020 (Evening plus weekend)

  • After a six week run up of 1700 points from 8900 to 10600 and continuous rise over last 3 weeks, i feel some correction is required and should be expected. 
  • The data, though, at the moment is not giving any such sign.
  • Rise in corona cases, global geo political situation could become one of the reasons for this correction to happen. 
  • Domestic economic indicators are showing rise in economic activity. Auto sales, Tractor sales are some examples.
  • All activities have to be taken cautiously. 
  • A trading range of 10400-10600 on a close note can be expected, though if broken on either side, a fall towards 10000 or a rise towards 11000 is possible.
  1. FII Bought for (857 Cr) for the first time in the week, while DII sold for (331 Cr) the first time in the week. So the net buying was 525Cr. This role reversal was a bit surprising. The FII buying came after 6 sessions and the DII selling came after 5 sessions. At a weekly level, DII bought for more than 5000 Cr and FII sold for slightly more than that. The net selling in the week was for 300 Cr.
  2. FII's opened 5400 longs and covered 1300 shorts. They are now net long with a ratio of 52:48. They however, opened 3000 shorts and closed a nominal long number of long positions on stock futures.
  3. On the option front FII sold more puts than calls and also bought more puts than calls.   
  4. For the next week expiry, Nifty has the highest OI for PE at 10400 and highest OI for CE is at 11000 closely followed by 10600. Good amount of put writing was seen at 10400, 10500 and 10600 levels. Call writing was seen 10600 upwards. 
  5. Bank Nifty has highest call OI at 23000 closely followed by 22500 levels. It has highest put OI at 21000 level. 
  6. Asian markets closed in green and European markets closed in red.
  7. All US exchanges closed in marginal green on Thursday and since the exchanges were closed on Friday in US, there was no activity. However, the futures was trading in red.  
  8. The breadth of the market was ok.
  9. On a weekly basis Nifty opened at 10311 and made an intra week low of 10223 and a high of  of 10630 before closing at 10603. 
  10. Bank Nifty opened at 21291 and made a low of 21026 and a high of 22344 before closing at 21856.   

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