25th Feb'2021 (Evening)

25th Feb'2021 (Evening)

  • What a dramatic end to a dramatic week. A ballistic volatile week, end with huge volatility. Extremely difficult to trade. Imagine the 36500 CE of Bank Nifty sold at INR 29 yesterday morning, was trading at 600 today morning. 
  • Bank Nifty shot up more than 2200 points from yesterdays low to todays high. And we had the trading glitch in between. If one has come out unhurt this week, he should consider himself blessed. I am one such soul :-)
  • FII unwound more than 23000 shorts, though they have not created meaningful longs. They also bought for small in cash. A good sign.
  • Next weeks options data indicates support at 15000 for Nifty and 36000 for Bank Nifty.
  • On Nifty, A dip towards 14900-14950 should be a buying opportunity, a deeper cut could be a red flag for short term. 
  • On Bank Nifty the view is bullish after the two days action. Lets see...
  • Some red flags coming in from US are a bit of concern. They US markets are trading in red. 
  • US 10 year yields have shot upto 1.48 and this could be a deterrent. However, the Dollar Index has fallen below 90 and that helps emerging markets. So mixed cues. Europe also closed in red today.
  • Since tomorrow is the first day of a new series, would wait to watch the opening action. Over all i am bullish as of now. Market seems to be a buying on dip as of now. 

1. FII were net buyers for 188 Cr today, while DII were sellers for 746 Cr. A net selling of 558 Cr from the institutional side.

2. FII's created 277 longs and unwound 23071 shorts on the indices

3. Being monthly and weekly expiry. Options data do not indicate much.

4. For next week expiry, Nifty has the highest OI for PE at 15000 followed by 14000 and highest OI for CE is at 16500 followed by 15200. Highest Put writing was seen at 15000 and highest call writing was seen at 16500 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 35000 followed by 36000 and highest OI for CE is at 37500 followed by 37000. Highest Put writing was seen at 36500 and highest call writing was seen at 37500 levels. 

6. Asian markets closed mostly in green and European markets closed in red

7. US markets trading with losses

8. The breadth of the market was very strong today

9. Nifty opened at 15079 and made an intra day high of 15176 and a low of 15065 before closing at 15097 .The range of Nifty for the day was 111 points.

10. Bank Nifty opened at 36763 and made an intra day high of 37232 and a low of 36494 before closing at 36549 .The range of Nifty for the day was 738 points.

11. UD Dollar Index is trading at 89.80

12. All sectors except FMCG moved today. Metals, Energy and Auto led the pack.

13. India VIX reduced to 22.89

14. US 10Y yields shot up to 1.475


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