12th Mar'2021 (Evening)

12th Mar'2021 (Evening)

  • The indices gave a surprise move in the second half on Friday. As the market opened higher after a holiday, it was expected that there would be some profit booking. However, at some point in the day it would pick up support. The selling only got aggravated in the second half.
  • I sold puts and they are now in risk. Am managing the positions aggressively now.
  • The range of 14862 and 15273 is was I was indicating on Nifty and 34658 and 37232 on Bank Nifty. While Nifty broke this range on the higher side, it quickly saw profit booking and corrected to lower levels. I expected Bank Nifty to also try a breakout above 36500 and attempt 27232, it did not move.
  • I see the indices still in that range. If the range continues to play, then the indices are at their support. So a move towards the upper limit of this band may be expected. Lets see.
  • Looking at OI Bank Nifty shows a band of 35000 to 37000. On Friday, call writers did not come below 37000, so that gives confidence that a bounce back towards this side may happen.
  • Nifty OI shows a range of 15000 to 15300. People were mostly writing straddles, so 15000 should be a good support. Again, lets see...
  • US 10 year Yields have shot up to 1.625 and that is a breach of its previous high, so this could be a spoil sport tomorrow. As mentioned earlier, this one factor has been spooking global markets. Our markets though have underperformed on Friday. So a bit of catch up can happen tomorrow.
  • Dollar Index is still in a comfortable zone, so it is not worrying or rather balances a bit.

1. FII were net sellers for 942 Cr today, while DII were sellers for 163 Cr. A net buying of 1105 Cr from the institutional side.

2. FII's unwound 4319 longs and created 1862 shorts on the indices

3. On the option front FII  sold 84862 calls and   sold 29449 puts. They also bought 67464 calls and  bought 61411 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 15000 followed by 14000 and highest OI for CE is at 16000 followed by 15300. Highest Put writing was seen at 15300 and highest call writing was seen at 15300 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 35000 followed by 34500 and highest OI for CE is at 37000 followed by 36500. Highest Put writing was seen at 37000 and highest call writing was seen at 34500 levels. 

6. Asian markets closed mixed.  Europe also closed mixed as well

7. US markets closed mixed with Dow closing in green and Nasdaq in red. 

8. The breadth of the market was weak today.

9. Nifty opened at 15321 and made an intra day high of 15336 and a low of 14953 before closing at 15030 .The range of Nifty for the day was 383 points.

10. Bank Nifty opened at 36497 and made an intra day high of 36497 and a low of 35188 before closing at 35496 .The range of Nifty for the day was 1309 points.

11. UD Dollar Index is trading at 91.678

12. Almost all sectors closed in red

13. India VIX increased to 21.71

14. US 10Y yields shot up to 1.625

15. Nifty futures saw a short buildup OI increased by 3.5% and index down by 1% 

16. Bank Nifty saw a short buildup. OI up 11.4% index down 1.4% 


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