7th Apr'2021 (Evening)

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 stand of FII in F&O suggests a range break and a shift to the immediate higher band. 
  • The next higher band could well be 33350 to 34400 on Bank Nifty and 14850 to 15150 on Nifty.
  • Tomorrow being a weekly expiry, we need to keep an eye on the positional build up on the next week.
  • But, do not forget the rising Covid cases and some hidden subtle evils mentioned in the MPC policy, that were ignored by the market today.

1. FII were net buyers for 227 Cr today, while DII were buyers for 381 Cr. A net selling of 608 Cr from the institutional side.

2. FII's unwound 3950 longs and unwound 10283 shorts on the indices

3. On the option front FII  unwound 5425 calls and   sold 22561 puts. They also bought 1834 calls and  bought 7619 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 14900. Highest Put writing was seen at 14700 and highest call writing was seen at 15100 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 32000 followed by 31000 and highest OI for CE is at 34000 followed by 33000. Highest Put writing was seen at 32000 and highest call writing was seen at 34000 levels. 

6. Asian markets closed mixed and Europe closed also mixed

7. US markets trading flattish

8. The breadth of the market was extremely positive today.

9. Nifty opened at 14716 and made an intra day high of 14879 and a low of 14649 before closing at 14819 .The range of Nifty for the day was 230 points.

10. Bank Nifty opened at 32529 and made an intra day high of 33191 and a low of 32141 before closing at 32991 .The range of Nifty for the day was 1050 points.

11. US Dollar Index is trading at 92.347

12. Almost all sectors closed in green today

13. India VIX reduced to 20.25

14. US 10Y yields were held at 1.644

15. Nifty futures saw a long buildup

16. Bank Nifty saw a short covering


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