26th Mar'2021 (Evening)

26th Mar'2021 (Evening)

  • Markets on Friday opened higher and was mostly range bound for the whole day. While Nifty closed almost at the opening level, bank Nifty closed with some losses.
  • Nifty made a Doji candle while Bank Nifty made a bearish candle on the daily chart.
  • FII did not sell big, DII actually bought close to around 1700 Cr in the cash market. This was a second strong buying figure from the DII over the last three days.
  • The strength was pretty good as the market breadth was strong and some short covering was seen on both the indices. A follow up of this is critical for the indices to gain strength. 
  • Over weekend, US closed strong on Friday and the global indices were positive on Monday, when we were closed. This would leave a catch up for the Nifty and Bank Nifty. Our indices would most probably open in green tomorrow.
  • Key is to watch if this gap up is sustained or sold out. I would mostly expect the gap up to be sold out. The low for tomorrow is then important. A breach of Fridays low, could then push the indices into gloom again.
  • US markets are nervous again over a Hedge fund margin breach. Banking stocks are particularly weak. Would this would spill over to us depends on how the US markets behave till we open tomorrow.
  • Dollar Index has shot up to almost 93 and Yields are higher too. So these again indicate some risk to FII capital for us. 
  • FII buying in cash is important for a follow up of Fridays action.
  • Key levels for Nifty are 14600 and 14750 from here. If these critical resistances are overcome, we can see a move towards 15000.
  • Key levels for Bank Nifty are 33500, 34400 and then 35000. A close above these levels would add strength on Bank Nifty. As of now, however, Bank Nifty is a weaker index.
  • While I feel a short term low of 32500 was made by Bank Nifty on Thursday, a breach of this level could trigger a much bigger correction.
  • Rising cases and lock downs locally would keep the pressure on our markets for now atleast.

1. FII were net sellers for 50 Cr today, while DII were buyers for 1703 Cr. A net buying of 1653 Cr from the institutional side.

2. FII's created 12049 longs and unwound 7386 shorts on the indices

3. On the option front FII  sold 33669 calls and   sold 40631 puts. They also bought 41624 calls and  bought 26807 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 14000 followed by 14500 and highest OI for CE is at 15000 followed by 15500. Highest Put writing was seen at 14500 and highest call writing was seen at 15000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 32000 followed by 30000 and highest OI for CE is at 34000 followed by 36000. Highest Put writing was seen at 33000 and highest call writing was seen at 34000 levels. 

6. Asian markets closed mostly in green on both Friday and today and europe also closed mostly in green for the two days.

7. US markets closedin green on Friday and have given up some of their Friday gains as of now.

8. The breadth of the market was extremely positive on Friday.

9. Nifty opened at 14506 and made an intra day high of 14572 and a low of 14414 before closing at 14507 .The range of Nifty for the day was 158 points.

10. Bank Nifty opened at 33605 and made an intra day high of 33610 and a low of 33166 before closing at 33318 .The range of Nifty for the day was 444 points.

11. UD Dollar Index is trading at 92.935

12. Most of the sectors closed in green with Metals leading the lot.

13. India VIX reduced to 20.65

14. US 10Y yields increased to 1.699

15. Nifty futures saw short coevering with OI decreasing by 14.84% and index increasing by 1.91%

16. Bank Nifty saw some short covering again with OI decreasing by 10.39%  and Index increasing by 1.69%



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