25th May'2021 (Evening)

25th May'2021 (Evening)

  • Markets opened gap up today and as mentioned yesterday, started to see selling. This was more pronounced in BankNifty than Nifty.
  • On a daily chart, both indices made bearish candles with a reasonable tail below, indicating some support coming in at lower levels.
  • While, Nifty still made candle with a higher high and a higher low, BankNifty actually made lower high and lower low.
  • So I feel, todays low become important levels for tomorrow. If these levels are protected than, these may become immediate swing supports for the indices. Tomorrow's first half trade is important from this view point.
  • 15300 and 35200 have proven to be strong resistances for today atleast. Levels continue to be important and buy on dips has been working for past few days. Buying near todays low tomorrow with a stop loss slightly below, may work if the market gives a dip, which i feel it will give.
  • Nifty seems to be having support at 15150 and BankNifty at 34400 for this week. These are the levels which were strong resistance earlier.
  • A breach of these levels could signal some weakness and trigger profit booking, else Nifty is on board to make bold move to ATH and sooner or later BankNifty would follow.
  • Monthly expiry factors may keep driving some volatility, though the VIX has eased below 19.
  • With some short buildup in futures, BankNifty seems to be relatively weaker than Nifty.
  • Cash buying from FII may be expiry related as well. While all looks strong, i would maintain caution.

1. FII were net buyers for 959 Cr today, while DII were sellers for 563 Cr. A net selling of 396 Cr from the institutional side.

2. FII's created 20545 longs and created 8046 shorts on the indices

3. On the option front FII  sold 11941 calls and   sold 13873 puts. They also bought 23508 calls and  bought 25104 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 14000 followed by 15000 and highest OI for CE is at 15500 followed by 15300. Highest Put writing was seen at 15200 and highest call writing was seen at 15300 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 34000 followed by 34500 and highest OI for CE is at 35000 followed by 37000. Highest Put writing was seen at 34500 and highest call writing was seen at 35000 levels. 

6. Asian markets closed in green and Europe closed mixed.

7. US markets trading flat

8. The breadth of the market was neutral today

9. Nifty opened at 15291 and made an intra day high of 15293 and a low of 15163 before closing at 15208 .The range of Nifty for the day was 130 points.

10. Bank Nifty opened at 35095 and made an intra day high of 35125 and a low of 34410 before closing at 34662 .The range of Nifty for the day was 715 points.

11. US Dollar Index is trading at 89.722

12. Banking were laggards today

13. India VIX reduced to 18.84

14. US 10Y yields are at 1.574

15. Nifty futures saw long buildup

16. Bank Nifty saw short buildup


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