10th July' 2020 (Evening plus weekend)

10th July' 2020 (Evening plus weekend)

  • After a long run up, markets seem to be in a phase of some consolidation and correction,
  • While i expected a higher correction on indices, it came more on Bank Nifty and less on Nifty. Reliance continued to hold Nifty. Probably because of its AGM this week and also some inside news of a fresh investment.
  • HDFC Bank and Reliance both seem to be bullish as of now. This maintains a overall bullish texture of the markets. US rally on Friday also support this sentiment.
  • However, a short position on the futures by the FII's indicates some more selling may come in before support emerges.
  • Would this selling continues tomorrow? depends on the global cues as well. Markets are following global cues more than the local macros as of now.
  • Nifty has support at 10660 and if it falls from there, I feel the lowest this market would see is the earlier resistance of 10400. While the markets are struggling to breach 10800 level convincingly, 11000 seems to be the upper limit if it does so.
  • Bank Nifty seems to be playing between, 22000 and 23000 as of now, Though i feel if it breaches 22000 then 21800 is the support else we directly see 21100 then. On the upside if it crosses 23000, the 23600 and 24000 are the levels to watch for.
  • Though we may have to wait for the above levels.
  1. Both FII and DII sold heavily today. FII Sold for 1031 Cr and DII sold for 431Cr. Net selling was 1462Cr. For the week gone FII were net sellers to the tune of 634 Cr and DII were net sellers for 2609 Cr putting together a net selling of 3243 Cr. 
  2. FII's positions on futures is extremely bearish. They opened 7275 fresh shorts and closed close to 14000 longs. On the Stock side also, their positions were extremely bearish. 
  3. On the option front FII sold more calls than puts and bought more puts than calls.   
  4. For the next week expiry, Nifty has the highest OI for PE at 10000 and highest OI for CE is at 110800 closely followed by 11000. Call writing was seen above 10800 levels and put writing was seen below 10700 and almost upto 10000 levels. 
  5. Bank Nifty has highest call OI at 23000 and highest put OI at 22000 levels. Highest call writing was seen at 23000 levels.  
  6. Asian markets closed in red and European markets closed in Green.
  7. All US exchanges regained their losses on Friday. On a weekly note, Dow closed marginally lower than its weekly high, while S&P and Nasdaq closed at a weekly high.  
  8. The breadth of the market was weak.
  9. On a weekly basis Nifty opened at 10723 and made an intra week low of 10676 and a high of 10847 before closing at 10772. The range of Nifty for the week was 171 points.  
  10. On a weekly basis Bank Nifty opened at 22270 and made an intra week low of 22040 and a high of 23080 before closing at 22411. The range of Bank Nifty for the week was 1040 points. 
  11. India VIX is at 24.82 level now. This is slightly lower than the opening level of the Election result day last year.

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