28th Jan'2021 (Evening)

28th Jan'2021 (Evening)

  • Today marks the end of Jan series. An extremely volatile end to the first series of 2021. The last three weeks, market was under pressure and the selling and volatility intensified in the last week. On a monthly chart the candle formed is a shooting star, bearish candle with a small body and a large wick above, indicating weakness ahead. On the weekly chart, we see three red candles with the last one with a longer wick below. 
  • The combination of above two, indicates a range bound February, capped on the upper side and may pick up support some where along. A bold decision / declaration in the budget may negate the view above. 
  • FII have turned net sellers over the last few days. With selling intensifying every new day.They have sold for 6000 Cr plus over the last 4 trading day. Though DII came to the rescue today with a buying of 1700Cr. A follow up has to be watched. With the DII selling from lower levels, I suspect if they would buy so early. The buying today was probably to give some stability. Lets see if FII buying returns / Selling stops from the new series.
  • While the selling was across all markets, Indian markets generally underperformed for the last few days. US is picking up as of now, so lets see.
  • Apprehension regarding budget also could be one reason for the selling. Post budget action would be important.
  • Price action in the new series would indicate, the mood tomorrow. Since we have budget on Monday, I feel tomorrow action may be no event actually. I stay out of market till Monday.

1. FII were net sellers for 3712 Cr today, while DII were buyers for 1736 Cr. A net selling of 1976 Cr from the institutional side.

2. For next week expiry, Nifty has the highest OI for PE at 13500 followed by 13800 and highest OI for CE is at 14000 followed by 15000. Highest Put writing was seen at 13800 and highest call writing was seen at 14000 levels.

3. For the next week expiry, Bank Nifty has the highest OI for PE at 30000 followed by 28000 and highest OI for CE is at 31500 followed by 31000. Highest Put writing was seen at 30000 and highest call writing was seen at 31500 levels. 

4. Asian markets closed red today while Europe closed mixed

5. US markets have recovered as of now and are trading well in green. 

6. The breadth of the market improved and was neutral with almost 1 advance to 1 decline.

7. Nifty opened at 13810 and made an intra day high of 13898 and a low of 13713 before closing at 13817 .The range of Nifty for the day was 185 points.

8. Bank Nifty opened at 29812 and made an intra day high of 30464 and a low of 29687 before closing at 30358 .The range of Nifty for the day was 777 points.

9. UD Dollar Index is trading at 90.54

10. Except BankNifty, everything else closed in red today.

11. India VIX eased to 24.29


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