21st Jan'2021 (Evening)

21st Jan'2021 (Evening)

  • What a day it was. Opened strong at ATH, saw a strong resistance and then came profit booking. Indices falling 236 (Nifty) and 857 (BankNifty)  points respectively.
  • With FII bullish in cash and Bearish in options, this was kind of expected, though the fall was much bigger and also somewhat recovered from the lows. Killing option sellers on both sides.
  • I felt the expiry would be between 32300 and 32700, it actually closed 100 points outside this band. However, being on the call side, made a decent expiry profit. Had sold a straddle of BankNifty @32000 day before yesterday and am seeing a healthy profit on the same in two days. The Easing of VIX had cooled off the premiums and the position is now well in green.
  • Because of the huge volatility the OI for option is all over the place. So would wait for tomorrows action to make some analysis. 
  • As of now Nifty is picking support at 14350 and is getting rejected at 14750 (ATH). a breakout outside this band would decide the next move. As mentioned in my eralier blog, markets would remain within this range for some time. BankNifty has a similar range of 32850 and 31650.
  • Reliance closed at 2099 today. A bullish move from here could be really strong. Keep it in your watch list.

 1. FII were net Buyers for 1614 Cr today, while DII were sellers for 1039 Cr. A net buying of 575 Cr from the institutional side.

2. FII's created 10955 longs and unwound 214 shorts on the indices

3. On the option front FII  unwound 76149 calls and   sold -28623 puts. They also bought -68856 calls and  squared 57521 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 14000 followed by 13500 and highest OI for CE is at 15000 followed by 14700. Reasonable Put writing was seen at 14700 and reasonable call writing was seen at 14700 and above levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 30000 followed by 32000 and highest OI for CE is at 33000 followed by 32500. Reasonable Put writing was seen at 32500 and reasonable call writing was seen at 32500 and above levels. 

6. Asian markets closed mostly in green today and Europe was marginally red

7. US markets are trading marginally red

8. The breadth of the market was negative today

9. Nifty opened at 14730 and made an intra day high of 14753 and a low of 14517 before closing at 14590 .The range of Nifty for the day was 236 points.

10. Bank Nifty opened at 32732 and made an intra day high of 32842 and a low of 31985 before closing at 32186 .The range of Nifty for the day was 857 points.

11. UD Dollar Index was trading at 90.25

12. Market fell across all sectors. Led by PSU specially, Metals, realty also fell heavily.

13. India VIX rose again to 22.18


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