28th May'2021 (Evening)

28th May'2021 (Evening)

  • The opening day of the Jun series saw buying from both DII and FII side. Cash buying on the first day is normally a good sign. 
  • FII created more longs than shorts and that too is a good sign for the markets. The FII are now 88% long on the indices. 
  • Though, the FII did sell more calls than puts , this is could be indicative of some hedging from short term movements.
  • Nifty on Friday crossed its all time high, saw some selling but did not fall much and recovered to close above its previous ATH of 15431. Not seeing an immediate rejection from these levels are indicative of strength.
  • However, the broader market breadth was not strong. While Nifty 50 saw 27 stocks growing against 23 going down. Nifty 500 saw only 199 going up against 299 going down. Also while Nifty gained, most of the important indices made bearish candles on the daily chart.
  • BankNifty though closed higher, actually made a bearish candle as compared to Nifty. Without participation of BankNifty, Nifty cannot continue this rally for long.
  • BankNifty for that matter has been facing strong resistance at 35400. Though it saw support at 35000. So tomorrow if BankNifty takes off 35450, we can see some strong movement on thee flip side a breach of 34950 could trigger a short term weakness.
  • Reliance was a major reason for Nifty's move on Friday, a spreading of market breadth is also required for a move up from here. Other than Bank Nifty, it would be useful to watch, IT, Pharma and of course Reliance itself.
  • State wise news of easing restrictions would be important to watch. While, the daily Covid cases have been going down, most of the states have been extending the shutdown for 1-2 weeks. While, i feel the markets have factored this in, it could still affect the sentiment.
  • The next week would also be loaded with many numbers, they could create some turbulence.
  • India VIX has eased below 8 now, so wild moves may not be expected. 
  • All in all, market has ingredients set to maintain strength, lets see how it unfolds tomorrow.
  • Nifty for now shows support at 15395 and 15275.
  • BankNifty has support at 34980 and 34500.

1. FII were net buyers for 913 Cr today, while DII were buyers for 1275 Cr. A net buying of 2188 Cr from the institutional side.

2. FII's created 6736 longs and created 2566 shorts on the indices

3. On the option front FII  sold 46722 calls and   sold 50531 puts. They also bought 47216 calls and  bought 63947 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 15300 followed by 14500 and highest OI for CE is at 16000 followed by 15500. Highest Put writing was seen at 15400 and highest call writing was seen at 16000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 35000 followed by 34500 and highest OI for CE is at 35500 followed by 36000. Highest Put writing was seen at 35000 and highest call writing was seen at 37500 levels. 

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

7. US markets closed mostly flat

8. The breadth of the market was weak on Friday

9. Nifty opened at 15421 and made an intra day high of 15469 and a low of 15394 before closing at 15435 .The range of Nifty for the day was 75 points.

10. Bank Nifty opened at 35345 and made an intra day high of 35436 and a low of 34977 before closing at 35141 .The range of Nifty for the day was 459 points.

11. US Dollar Index is trading at 90.040

12. Energy led by reliance were the leaders today. 

13. India VIX reduced  to 17.4

14. US 10Y yields are at 1.581

15. Nifty futures saw a long build up

16. Bank Nifty saw long buildup


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