14th May' 2021 (Evening)

14th May' 2021 (Evening)

  • Indices opened gap up on Friday, but could not maintain their charm and slipped. While Nifty could pull in some support at lower levels, Bank Nifty appeared weak and closed near its day low.
  • On a daily chart both Nifty and BankNifty made bearish candles.
  • FII sold heavily on Friday, their highest in this month and after the selling on 30th April. 
  • DII bought for 613 Cr, but nowhere to match the selling of FII.
  • In FnO, FII unwound some shorts and bought calls heavily, indicating a bit of optimism but this is not supported by their moves in the cash segment. 
  • While Nifty made lower low and lower high, some support came in at lower levels. Immediate previous swing low of 14595 and swing high of 14775 are crucial levels to watch tomorrow. 
  • A breach on either side may take the index to its next support or resistance level. These levels were mentioned earlier and remain the same. Nifty resistance levels 14775, 14900, 15050 and supports at 14595, 14450, 14275.
  • BankNifty continues to be a weaker index. On Friday, it did not see any major support coming in and closed at its important support of 32154. While this continues to be an important support, its immediate levels seen are as. BankNifty resistances 32500, 33000, 33450 and 34300 and supports at 32154, 31552, 31023 and 30450.
  • A breach of above levels could be an opportunity to go long or short to the next level. 
  • Earnings rerating and Covid scenario has been playing a strong overhang on our indices and a concrete trigger is required to breach the key levels. A very broad range playing out in the market is 14275 - 14900 on Nifty and 32154 to 33000 on BankNifty. Though BankNifty may breach this on the lower side and drift to its next level support of 31550 to widen the range.

1. FII were net sellers for 2607 Cr today, while DII were buyers for 613 Cr. A net Selling of 1994 Cr from the institutional side.

2. FII's created 56 longs and unwound 4117 shorts on the indices

3. On the option front FII  sold 51767 calls and   sold 43024 puts. They also bought 84324 calls and  bought 54043 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 14000 followed by 14600 and highest OI for CE is at 15500 followed by 15000. Highest Put writing was seen at 14600 and highest call writing was seen at 15500 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 31000 followed by 30000 and highest OI for CE is at 32500 followed by 33000. Highest Put writing was seen at 31000 and highest call writing was seen at 32500 levels. 

6. Almost all asian markets and European markets closed in green on Friday. 

7. US markets closed strong on Friday.

8. The breadth of the market was weak

9. Nifty opened at 14749 and made an intra day high of 14749 and a low of 14591 before closing at 14677 .The range of Nifty for the day was 158 points.

10. Bank Nifty opened at 32495 and made an intra day high of 32622 and a low of 32115 before closing at 32169 .The range of Nifty for the day was 507 points.

11. US Dollar Index is trading at 90.287

12. Except for FMCG all sectors closed in red

13. India VIX increased to 20.27

14. US 10Y yields are at 1.635

15. Nifty futures saw unwinding of OI

16. Bank Nifty saw short buildup


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