29th Jun'2021 (Evening)

29th Jun'2021 (Evening)\

  • Markets opened marginally lower today and started sliding due to profit booking. While Nifty gave away approx 70 points, BankNifty gave away approx 350 points today.
  • Both indices made bearish candles on their daily charts, this being a second successive bearish candle. Though it is still above its important supports of 20 DEMA and also Previous Swing lows. These levels are as follows :
    • Nifty - 20DEMA at 15673. First Swing support - 15673 Second Swing support - 15450
    • BankNifty - 20DEMA at 34882 First Swing support - 34525 Second Swing support - 33908
  • Coincidentally Nifty 20DEMA and Pr Swing coincide at 15673, making it an important support. Today Nifty made a low of 15713, just above this level, so watch this tomorrow morning.
  • BankNifty I feel will has three levels at 34882, 34525 and then 33908. Today BankNifty made a low of 34913. This is just marginally above the first support of 34882. So watch this level tomorrow morning.
  • If the Index breaches one level, the next one becomes relevant. So important to watch these levels.
  • On the upside also Indices seem to be capped at 15900 and 35500. This is also supported by the options OI. Heavy call writing was seen today at 15800 and 35000 for Nifty and BankNifty today.
  • While FII bought for a small amount, they again unwound a substantial number of contracts on futures. They also wrote a huge number of calls in comparison to puts. close to 5 calls for every put. This was also complimented by a good amount of shorts they created in stock futures.
  • I see FII bearish in FnO, though they bought marginally in cash. 
  • The cash data today is also indicative of some strong buying from DII at lower levels. As mentioned yesterday, a breakout is possible (either side) based on who changes it behavior. 
  • Europe closed in green and US is trading flat as of now. Need to watch the close for the handover tomorrow morning to our markets.
  • Watch for British GDP tomorrow. The expectation is to be -1.5%(QoQ) Q1 and -6.1% (YoY) Q1. A surprise could be a trendsetter for short term. 
  • Generally I would be bullish and buy on these dips till they hold the levels as mentioned above.

1. FII were net buyers for 116 Cr today, while DII were buyers for 1810 Cr. A net buying of 1926 Cr from the institutional side.

2. FII's Unwound 13898 longs and created 2169 shorts on the indices

3. On the option front FII  sold 54376 calls and   sold 11092 puts. They also bought 59292 calls and  bought 53950 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 15500 followed by 15700 and highest OI for CE is at 15900 followed by 15800. Highest Put writing was seen at 15550 and highest call writing was seen at 15800 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 35000. Highest Put writing was seen at 35000 and highest call writing was seen at 35000 levels. 

6. Asian markets closed mixed and Europe trading in green

7. US markets trading flat with Nasdaq marginally in red and Dow in green.

8. The breadth of the market was weak today

9. Nifty opened at 15807 and made an intra day high of 15835 and a low of 15724 before closing at 15748 .The range of Nifty for the day was 111 points.

10. Bank Nifty opened at 35320 and made an intra day high of 35337 and a low of 34913 before closing at 35010 .The range of Nifty for the day was 424 points.

11. US Dollar Index is trading at 92.017

12. Except for Pharma and FMCG, all sectors closed in red

13. India VIX decreased to 13

14. US 10Y yields are at 1.485

15. Nifty futures saw long unwinding

16. Bank Nifty saw SHort buildup


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