EquityCompound2

17th Aug' 2020 (Evening) Markets opened gap up today and as expected it was quickly sold out. Though, support was found at 11145 for Nifty and 21450 for Bank Nifty. Though Friday's low were protected, the highs were also not broken. Markets operated within the Friday range.  Wait to see the action tomorrow for a breakout on either side. I feel the move should be towards higher side. AGR has been hanging on Reliance and a planned lawsuit on HDFC Bank. Maybe one reason for pressure on Nifty and Bank Nifty. As of now markets range bound. The build up of OI indicates a Nifty range of 11200-11400 for aggressive traders and 11000-11500 for safe investors. For Bank Nifty this range plays between 21500-22000 for aggressive investors and for safe investors this range could be 21000 -22500. And i still hold my positions on Bank Nifty and HDFC Bank. :-) 1. FII were net buyers for 332.9 Cr today, while DII were sellers for 717.62 Cr. A net selling of -384.72 Cr from the institut...

  14th Aug' 2020 (Evening) The markets opened positively on Friday. Around 1.30 a sharp fall was observed. Nifty showed a movement of 250 points and Bank Nifty moved 800 points intraday. Markets recovered a bit by the end of the day and Nifty closed 120 points down and Bank Nifty 500 points down on a closing basis. I personally feel this was a knee jerk reaction to global moves. European markets opened lower and US futures also fell marginally. Since our markets are also running high in a sensitive zone, it lead to a profit booking.  DII selling continues as normal and FII did not seel. In fact they are net buyers.  Monday is also the AGR verdict day. However, i feel the news probably is factored into the movements. So it should not be a big event. However, sentimental movements cannot be ruled out. Nifty took support at its 20 day DEMA and Bank Nifty took support at its 50DEMA. I feel the positive sentiment should continue. We will see a confirmation of this tomorrow....

13th Aug' 2020 (Evening)  While Markets opened strong, the early gains in the day were washed out later. Nifty after touching an intraday high of 11359 corrected to 11270 but finally closed at 22230. Similarly, Bank Nifty after touching an intraday high of 22438, finally settled at 22230. The indices continue to be strong and as mentioned this continues to be a buy on dip rally. Nifty enjoys support at 11200 and Bank Nifty at 22000. I have shorted 22500 PE for August expiry and collected a healthy premium of 650 INR per lot. Risk only below 21850. Plan to convert into futures if it falls to that level. Continue to hold HDFC Bank futures. While i expected an exit today (@1080). Hope to get the same in coming week. Bullish on Bank Nifty and wait to see a strong momentum build. 1. FII were net buyers for 416.28 Cr today, while DII were sellers for 763.54 Cr. A net selling of -347.26 Cr from the institutional side. 2. FII's created 4876 longs and covered ...

12th Aug' 2020 (Evening)  Markets generally seem strong.  Nifty has support at 11200 and Bank Nifty at 22000. Closing tomorrow seem to be happening above these levels. Markets consolidated today and this is healthy for the markets. SBIN took down its resistance at 200 and closed above it. Led the rally in PSU Banks. Expect to see some short covering tomorrow.  Trading range for Nifty 11200-11500 and for Bank Nifty 22000-23000 1. FII were net buyers for 351.15 Cr today, while DII were sellers for 939.67 Cr. A net selling of -588.52 Cr from the institutional side. 2. FII's unwound 5034 longs and created 10905 shorts on the indices 3. On the option front FII sold 3614 calls and short closed 2252 puts. They also bought 6530 calls and bought 9587 Puts. 4. For this week expiry, Nifty has the highest OI for PE at 11200 followed by 11000 and highest OI for CE is at 11500 followed by 11400. Reasonable Put writing was...

 12th Aug’ 2020 (Morning) US closed marginally lower after a strong start. Precious metals fell heavily.  Yields higher  Asian markets opening on a cautious note. A bit of risk averseness seen.  Buy on dips still hold  Bank Nifty to be watched. (Holding positions in BankNifty)

  11th Aug' 2020 (Evening) As expected and mentioned yesterday, Bank Nifty made a good move today. It now has now built up a strong support at 22000. The range it is now playing for this expiry is between, 22000 and 22500. Aggressive selling can be done at 22000 PE, while safe may do at 21500 (Thought the premium is moderately low at 21500). Nifty seems to be playing between 11000 and 11500. The support building at 11200 indicates a moderate risk by selling 11200 can give better returns. Though safe selling can continue at 11000. ICICI Bank position was booked today. Made a total profit of 16% on capital deployed. Took a fresh position on HDFC Bank today. Expect to achieve 1080. Bank Nifty seems really strong. Overall markets are bullish and any dips are good to buy. 1. FII were net buyers for 1013.66 Cr today, while DII were sellers for 1415.54 Cr. A net selling of -401.88 Cr from the institutional side. 2. FII's created 841 longs and ShortClosed 697...

 10th Aug' 2020 (Evening) Markets opened stronger today, Banking stocks and Pharma supported the index. Bank Nifty crossed 22000 and made a high of 22067, but then saw some consolidation at that level. It closed strong at 21926 (slightly below 22000). Pharma led by Cipla made great moves. Pharma and IT are clearly the leading segments for the markets.  Bank Nifty has been continuously under performing for some time now. Against IT and Pharma moving by around 30%, Bank Nifty has just made 13.2 % gains in a period when Nifty made 22% gains. Nifty continues with a working range of 11000 to 11300. If Bank Nifty supports, we may see a breakout above 11300, this may give a trending move in that direction. Bank Nifty has a support at 21500 and has been bullish today. We may see a breakout above 22000 tomorrow. Hopefully global Cues support. 1. FII were net buyers for 302.88 Cr today, while DII were sellers for 504.92 Cr. A net selling of -202.04 Cr from the institutional s...

  7th August' 2020 (evening) The indices were range bound on Friday. Absence of major cues ad the recent run up has been the reason for markets to consolidate it seems. Bank Nifty is facing major resistance at 22000. Nifty is moving in a range of 11000 to 11300.  The trigger to break this range may come from the AGR verdict tomorrow. That may move Bank Nifty and the telecom stocks. This would reflect on Nifty as well. Watch closely on the same. For Bank Nifty to move, HDFC Bank has to move. While Bank Nifty has a lot of runway to catch up with Nifty, it has been cautiously moving for some time now. A bit of action was seen on Friday as well, but selling comes in nearing 22000. Has to break this range. Lets watch for the action tomorrow. I believe other than AGR, there is no major Cue, so watch for Global Cues coming in. I see Nifty playing between 11000 and 11300 as of now and Bank Nifty seems to have picked up support at 21500. Though the upper range of 22000, still ne...

6th Aug' 2020 (Evening) After making a move yesterday, today also markets opened strong and made a sharp move after the RBI announcement. It soon saw some sharp profit booking and slipped.  The slip i feel is driven of expiry and hopefully the move should continue. Nifty seems strong at the moment, Bank Nifty will have to be watched tomorrow morning. Global Cues will be important for tomorrow's move. RBI policy was welcomed and expected by the markets. Nifty has a clear support at 10880. Shorting puts at this level for the coming week should be good.  For Bank Nifty currently holding covered calls. Last week i pocked all the premium at 22500, 22800, 23000 and 23500 levels. Now this week, again sold 22500, 25800 and 2300 calls.  ICICI Bank long position is now in profit. The calls i sold for managing the position are also in profit. So, all in all a healthy situation. 1. FII were net buyers for 637.43 Cr today, while DII were sellers for 468 Cr. A net buying of ...

5th Aug' 2020 (evening) FII have been selling one day and buying another. Switching positions on the Index futures as well. Markets picked up a strong move in the morning itself today, but the move fizzled out and thought the markets tried to re energize, any big movement could not be seen. While Reliance and HDFC started participating since yesterday, they both saw some consolidation again today. The market generally is strong and expect to move towards its previous resistance of 11250. Range of the market seems to be 11000 to 11200 for this week. A lot depends on the RBI policy tomorrow. We will have to see if the Banks move and support Nifty tomorrow. The outcome of RBI will set the tone for the day. 1. FII were net sellers for 60.18 Cr today, while DII were sellers for 425.98 Cr. A net selling of 486.16 Cr from the institutional side. 2. FII's unwound 1000 longs and unwound 5000 shorts on the indices 3. On the option front FII sold...