7th May'2021 (Evening)

7th May'2021 (Evening)

  • Markets opened gap up on Friday, but the strong opening was sold off. Markets did see buying coming in at lower level, but again could not sustain the support for long and closed below the highs.
  • on a daily time frame, Nifty made a Doji kind of candle but had a bullish body. BankNifty made a bearish candle and closed below the opening levels.
  • While Nifty has breached its immediate resistance at 14625-14650, this may now act as its immediate support level. We do have to wait for this confirmation though. The next resistance for Nifty would be 14900 and then 15050. Unless these are taken off on a closing basis, we are not out of the woods.
  • Support levels expected for Nifty are at 14625, 14450, 14275.
  • Bank Nifty is still weak and has not convincingly taken off its resistance at 33000. It has crucial barriers at 33450, 34300 before a fresh move could be expected.
  • Supports for BankNifty remain intact at 32575, 32154 and 31552.
  • On a daily time frame both the indices have been making higher highs and higher lows, indicating support coming in at lower levels. However, they have to now take off these critical resistances to continue this move further. So coming sessions are important.
  • While the global markets are strong and the cues are supportive, I feel the Covid over hang has been keeping our markets severely under pressure.
  • FII pulled out money again on friday after the Thursday expiry and as mentioned earlier, for any sustainable move up, FII buying would be important. Again, this nervousness is driven by Covid.
  • With news coming in of Covid cases peaking out in May, the confidence may start to build up, however, the damage before this peak out is yet uncertain.
  • Expect markets to open with some optimism tomorrow, however, key to watch, is will this optimism sustain.

1. FII were net sellers for 1142 Cr today, while DII were buyers for 1468 Cr. A net buying of 326 Cr from the institutional side.

2. FII's created 3362 longs and unwound 263 shorts on the indices

3. On the option front FII  sold 35704 calls and   sold 33951 puts. They also bought 19269 calls and  bought 27798 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 14500 followed by 14000 and highest OI for CE is at 16000 followed by 15200. Highest Put writing was seen at 14800 and highest call writing was seen at 15200 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 32000 followed by 31000 and highest OI for CE is at 34000 followed by 33000. Highest Put writing was seen at 33000 and highest call writing was seen at 34000 levels. 

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

7. US markets closed strong on Friday

8. The breadth of the market was strong

9. Nifty opened at 14816 and made an intra day high of 14863 and a low of 14765 before closing at 14823 .The range of Nifty for the day was 98 points.

10. Bank Nifty opened at 33041 and made an intra day high of 33259 and a low of 32771 before closing at 32904 .The range of Nifty for the day was 488 points.

11. US Dollar Index is trading at 90.203

12. Almost all sectors were positive,led by Metals

13. India VIX reduced to 21.96

14. US 10Y yields are at 1.579

15. Nifty futures saw long buildup4

16. Bank Nifty saw long buildup


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