EquityCompound2

9th Apr'2021 (Evening) FII and DII both sold on Friday. A combined selling of 924 Cr from them. FII position in F&O is bearish. Covid cases continue to rise in India with more than 1.5 lac cases per day. Maharashtra reporting the highest number of cases contributing to almost 50% of daily cases in India. There are news reports that Maharashtra government is contemplating a complete lockdown for 15 days and that is not good news. While Dollar Index has eased out and US yields have been stable, also the US markets have been making new highs over past days, the local cues have been extremely negative and has kept the markets capped. Bank Nifty continues to be the weaker Index and has been a reason for Nifty being capped inspite of IT, Pharma and Metals making good moves. Earnings would start flowing in the coming week and would give a pulse of Q4. Rupee has fallen substantially over the last few days, maybe a good news for IT, but a poor indicator for FII capital. Nifty seems to b...

7th Apr'2021 (Evening) FII buying returned with some small buying today. Lately, their pattern is that they buy small and then sell big for few days. With Dollar Index back to 92.5 range, lets see if there is a follow up. The RBI MPC announcements changed the sentiments in the market today and an immediate sharp recovery seen with Nifty adding longs and bank Nifty losing some reasonable shorts. There has been a good easing in the bond yields both in US and back home and the liquidity seems to stay in system for some time. The hangover of rising Covid cases stay though.  On the indices both Nifty and Bank Nifty made bullish candles, but they both fell short of the critical resistances of 14884 on Nifty and 33000 on Bank Nifty. This range needs to be breached on a closing basis for the upward momentum to continue. The indices are on the upper limit of the current range.  The option OI indicates a range of 14700 and 15100 on Nifty and 32000 and 34000 on Bank Nifty. The bullish st...

6th Apr'2021 (Evening) Inspite of strong cues emanating from US, Asia was mixed since morning. Covid cases weighed heavy on the Indian markets.  A ping pong kind of game is on with FII selling on rise and DII supporting on fall.  On the daily chart an inside bar was created by Nifty and the markets seems to be range bound with 14460 on the lower side and 14883 on the higher side. Bank Nifty seems to be weak and seems to be operating in a range of 32350 and 33000 at the moment. It is at a critical level. Further weakness could push it down towards, 32500 and then 32000 levels, while sustenance at the current level may trigger a short covering to 33000 levels. Dollar index and yields have eased but the lockdown and earnings watch have kept the markets on a bit of stove, will have to wait for the steam to build. The RBI MPC review outcome tomorrow may give a bit of direction to the markets.  The Option OI indicates a range of 14300 and 15000 levels on Nifty and 32500 and 330...

5th April'2021 (Evening) What a day it was. After some good short covering and strong Cues flowing in from US, was expecting markets to be strong today. While expecting a gap up and then maybe some profit booking, actually the profit booking came immediately as the investors were probably spooked by the lock down announcements. I did mention that the spike in daily cases and lock downs could be a spoil sport, they actually did spoil the game today. Since most of the Asian markets were closed, there was nothing to hold on to. The little bit came from Europe after they gave a green indication. Both Nifty and Bank Nifty breached their Thursday lows of 14692 and 33208 and closed below them.  As mentioned earlier, the trend would evolve after the books are closed on 31st and the first weekly expiry after that. So, this could be a short term indication of weakness. While globally the cues are strong and US is at all time highs, our markets may remain under pressure. The FII positioning i...

1st April'2021 (Evening) Markets saw a positive sentiment on Thursday. Markets opened strong and maintained the strength through out the day, forcing short covering. Both the indices saw short covering, while the short covering on Bank Nifty was much more aggressive, with OI down by 26%. FII brought in some cash, though very minimal. Some shorts were covered by FII in futures. The option data is not so relevant as it was an expiry day. Based on the stimulus announcements from President Biden, US closed extremely strong on Thursday. Dow rose 0.5% and Nasdaq rose 1.7%. Asian markets were trading strong on Friday and most of these will be closed tomorrow on Easter. I feel we should see a strong open tomorrow, maybe around 100pts gap up. If this is sustained, it could further trigger a short covering up to 15150. Bank Nifty would also see a strong opening and a sustenance could help breach the previous resistance of 34400 and help support a move towards 35000 level. I feel Bank Nifty m...