10th May'2021 (Evening)

10th May'2021 (Evening)

  • As expected, Markets today opened on a positive note. But both the indices failed to build up any substantial movement from there. While Nifty did show some strength, BankNifty was a bit weaker out of  the two.
  • In the cash market, FII put in some money. However, this 500 Cr was just enough to match the selling of DII. Finally, nothing majorly moved.
  • FII buying is not complimented by any substantial positional buildup in FnO space, hence sustainability of this buying can be suspected.
  • In futures, both Nifty and BankNifty have not seen any major build up, though I see a tug off war between the bulls and bears at these levels. A trend is yet to evolve. 
  • It is important to see that both indices continue to hover around the upper range of the current range. A breach on either side could trigger a sharp movement.
  • The intraday range for Nifty and BankNifty has been shrinking for the last few days. While both Nifty and BankNifty have breached their 20 and 50DEMA levels as resistances and technically these levels should now be good supports for the indices, volumes and OI is still not supporting this feeling.
  • At the same time the indices are very close to their immediate swing resistances. BankNifty is yet to breach the 33450 mark and Nifty has to take off 15050.
  • While the markets seem to be optimistic and the global cues were extremely positive in the morning, our markets could not capitalize on them. The Covid and earning rerating over hang stays.
  • As mentioned the optimism is being built up because of the Covid cases kind of plateauing.
  • I do not see strength built up yet, while the indices may be rising, so be careful. Do not short yet, but also do not be aggressively long.
  • Tread carefully from here and keep all positions hedged.

1. FII were net Buyers for 583 Cr today, while DII were buyers for 476 Cr. A net Selling of 107 Cr from the institutional side.

2. FII's Unwound 4044 longs and unwound 1065 shorts on the indices

3. On the option front FII  sold 23916 calls and   sold 26357 puts. They also bought 39106 calls and  bought 38483 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 14500 followed by 14600 and highest OI for CE is at 15500 followed by 15200. Highest Put writing was seen at 14900 and highest call writing was seen at 15500 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 33000 followed by 32000 and highest OI for CE is at 33500 followed by 34000. Highest Put writing was seen at 33000 and highest call writing was seen at 33500 levels. 

6. Asian markets closed mixed today and Europe closed in red

7. US markets trading mixed, with Dow up and Nasdaq down

8. The breadth of the market was strong

9. Nifty opened at 14928 and made an intra day high of 14966 and a low of 14892 before closing at 14942 .The range of Nifty for the day was 74 points.

10. Bank Nifty opened at 33175 and made an intra day high of 33297 and a low of 33028 before closing at 33142 .The range of Nifty for the day was 269 points.

11. US Dollar Index is trading at 90.067

12. Almost all sectors were positive, led by Metal and Pharma

13. India VIX reduced to 20.23

14. US 10Y yields are at 1.572

15. Nifty futures did not see major change in OI

16. Bank Nifty saw long buildup


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