29th Jan' 2021 (Evening)

29th Jan' 2021 (Evening)

  • Volatility continued to lay havoc. While bankNifty recovered, Nifty continued its journey southward. BankNifty saw support coming in at 30254, Nifty did not see any reasonable support.
  • The risk aversion has been developing globally, but Nifty has been an underperformer for January across all major global markets. Partly this is driven from Budget related uncertainty. 
  • Cash was taken out by FII and positions lightened in futures. Positions being driven through options. @ calls sold for every put and calls bought more than Puts. 
  • My view is that the market has already bought in bad news and unless a fresh Bomb is blasted, do not see a major fall. Though a good announcement may move the index substantially upwards. Volatility through the budget day will definitely be seen.
  • Any clear views on the short term will be made post the budget tomorrow. Till then avoiding leveraged positions.
  • BankNifty generally seems to be stronger than Nifty as of now.
  • For tomorrow, supports and resistances carry no meaning I feel, hence no mention of the same.

1. FII were net sellers for 5930 Cr today, while DII were buyers for 2443 Cr. A net selling of 3487 Cr from the institutional side.

2. FII's unwound 3429 longs and unwound 3561 shorts on the indices

3. On the option front FII  sold 67099 calls and   sold 31736 puts. They also bought 75361 calls and  bought 43831 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 13800 followed by 13000 and highest OI for CE is at 15000 followed by 14000. Highest Put writing was seen at 13800 and highest call writing was seen at 13800 levels.

5. 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 34000 followed by 32000. Highest Put writing was seen at 30500 and highest call writing was seen at 32000 levels. 

6. Asian markets closed in red today while Europe closed red as well.

7. US markets also closed in red on Friday.

8. The breadth of the market was poor.

9. Nifty opened at 13946 and made an intra day high of 13966 and a low of 13596 before closing at 13634 .The range of Nifty for the day was 370 points.

10. Bank Nifty opened at 30700 and made an intra day high of 31111 and a low of 30254 before closing at 30565 .The range of Nifty for the day was 857 points.

11. UD Dollar Index is trading at 90.53

12. Sectorally, except Banking all other sectors were weak.

13. India VIX increased again to 25.34


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