7th Jun' 2021 (Evening)

7th Jun' 2021 (Evening)

  • Markets opened strong again today, but as seen from past few days, saw some selling, but traded in a very narrow range. Nifty saw an intraday range of 95 points and BankNifty 207 points. 
  • This extremely flat range and an extremely positive sentiment also led the VIX to fall to PreCovid levels.
  • Intraday range for Nifty for the last 6 days is as 232, 132, 138, 94, 111, 95. BankNifty has been similarly making 654, 472, 345, 310, 634, 207. BankNifty shows a divergence from this shrinking daily range, atleast on one occasion.
  • While the sentiment, VIX and a shrinking daily range (with higher lows) is indicative of a bullish breakout, somehow the strong movement is not seen in the large caps. 
  • While Midcaps are making new highs every day, Somehow, Nifty is not seeing a proportionate benefit. Also, BankNifty is somehow not supporting the Nifty movement.
  • If BankNifty supports now and makes a move towards all time high. Nifty may easily see a day with 16000.
  • However, i personally feel there is some uncertainty at these levels and to keep a healthy rise, a small correction at these levels would help.
  • FII continue to be heavily on the long side with 84:16 in favor of longs. They have also pumped in a good amount in cash. As mentioned on the first day of this series, Cash coming in on the first day was a good sign.
  • FII today were kind of neutral in options today. Seems they do not expect a big move before this expiry.
  • from options OI, seems, Nifty has a strong support at 15550, while BankNifty seems rangebound around 35500.
  • Extreme caution is advised in the current situation. I am carrying light and hedged.

1. FII were net sellers for 186 Cr today, while DII were buyers for 983 Cr. A net buying of 797 Cr from the institutional side.

2. FII's created 969 longs and unwound 3320 shorts on the indices

3. On the option front FII  sold 18077 calls and   sold 20683 puts. They also bought 34483 calls and  bought 30315 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 15700 followed by 15000 and highest OI for CE is at 16000 followed by 15800. Highest Put writing was seen at 15700 and highest call writing was seen at 16200 levels.

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

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

7. US markets trading marginally in red as of now.

8. The breadth of the market was strong today

9. Nifty opened at 15725 and made an intra day high of 15773 and a low of 15678 before closing at 15751 .The range of Nifty for the day was 95 points.

10. Bank Nifty opened at 35460 and made an intra day high of 35545 and a low of 35338 before closing at 35443 .The range of Nifty for the day was 207 points.

11. US Dollar Index is trading at 89.915

12. Except Metals almost all sectors closed in green.

13. India VIX reduced to 15.57

14. US 10Y yields are at 1.567

15. Nifty futures saw minor long buildup

16. Bank Nifty saw short covering


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