31st May' 2021 (Evening)

31st May' 2021 (Evening)

  • Markets opened slightly lower today, saw a bit of slide and then quickly took support to rise and close strong.
  • Nifty crossed 15600 and made a new All time high of 15606, before closing at 15582.
  • BankNifty picked support at 34930 and then rose to cross 35500 to close at 35526.
  • BankNifty had a strong resistance at 35450 and it struggled for almost the whole day to cross this.
  • Both indices took support almost at the same levels I mentioned yesterday.
  • Even after BankNifty crossing 35500, any reasonable unwinding of calls at 35500 were not noticed. Raising suspicion on the sustenance of BankNifty at this level.
  • Nifty on the other had saw heavy put writing at 15500 without any reasonable call writing, indicating a strong momentum even at this level.
  • While the market rise today, was a little more broader than Friday, Auto and IT still have not participated in the rally. Reliance was again a prime mover today, rising 3% again.
  • A sustenance above 35500 tomorrow, could trigger a further short covering on BankNifty.
  • FII bought for good 2500 Cr today in the cash market, though this buying was not complimented by the domestic institutions.
  • On the FnO side, FII unwound longs and created some small number of shorts. They however, unwound some short calls and sold more puts. These puts were hedged by buying a good number of puts. 
  • The scenario indicative of cutting on cash buying and playing through the options. If DII and retail do not support the market tomorrow, we may see some correction.
  • Asian markets were a bit subdued because of China numbers.
  • Since, US is closed on account of memorial today, meaningful global cues are not expected tomorrow. So lets see.
  • India national accounts data released today was not very encouraging. With per capita income going down and consumers withholding on spends, it could not be a good sign for the economy. Lets see, how this plays out tomorrow. Though, I do not see a huge impact.
  • Covid numbers continue to be encouraging with cases reducing, and a gradual (But delayed) reopening scenario.
  • Risk reward is not in favor of fresh longs, Look for a break below todays lows, else the strength is maintained.

1. FII were net buyers for 2412 Cr today, while DII were buyers for 179 Cr. A net buying of 2591 Cr from the institutional side.

2. FII's unwound 5693 longs and created 625 shorts on the indices

3. On the option front FII  unwound 5590 calls and   sold 26601 puts. They also bought 13082 calls and  bought 30645 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 15400 followed by 14500 and highest OI for CE is at 16000 followed by 15700. Highest Put writing was seen at 15500 and highest call writing was seen at No reasonable levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 35000 followed by 34000 and highest OI for CE is at 35500 followed by 36000. Highest Put writing was seen at 35500 and highest call writing was seen at 35500 levels. 

6. Asian markets closed mixed and Europe closed mixed as well.

7. US markets closed today. Futures trading marginally in red as of now.

8. The breadth of the market was positive today

9. Nifty opened at 15437 and made an intra day high of 15606 and a low of 15374 before closing at 15582 .The range of Nifty for the day was 232 points.

10. Bank Nifty opened at 35097 and made an intra day high of 35584 and a low of 34930 before closing at 35526 .The range of Nifty for the day was 654 points.

11. US Dollar Index is trading at 89.828

12. Metals led the rally again today and most of the indices were in green

13. India VIX reduced to 16.89

14. US 10Y yields are at 1.581

15. Nifty futures saw a long build up

16. Bank Nifty saw short covering


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