EquityCompound2

27th July'2021 (Evening) -- | Written at 11.00 PM | Indices opened positive today, made small gains but then started sliding and closed at the low end of the trading range of the day. Both indices made bearish candles on a daily chart. This formation after two days of bearish uncertain candles is actually important indication. Nifty breached the Friday low. However, Bank Nifty still stands above and at least for now seems stronger than Nifty. The weakness in Nifty was particularly driven by Nifty Pharma and Reliance. Nifty Pharma was hit specifically by Dr Reddy due to poor results and it actually hit the lower circuit. Other Pharma stocks also took a hit because of this. The global cues were also throughout the day and there was nothing that the bulls could hold on to. US futures was down, specially Nasdaq due to the China rout on technology stocks, Asian stocks were mostly down and later in the day Europe was mostly red. FII continued to sell as usual. DII bought but could not ma...

26th Jul'2021 (Evening) -- | Written at 11.00 PM | Indices opened flat today. Inspite of a strong handover from US on Friday, and some strong results over the weekend, the indices remained under pressure. The global cues were weak and both Asian Markets and the European markets were weak, leading to a subdued sentiment through out the day. Bank Nifty made a Doji candle on the daily chart and Nifty made a bearish candle. Indices lacked direction through the day and indicated weakness. FII sold heavily again in cash markets to the tune of 2376Cr and DII bought for 1500Cr. On the FnO side, FII were neutral. The options OI indicate a support at 15800 and resistance at 16000 levels for Nifty and for BankNifty support comsin at 34800 and resistance still stays at 35200 levels. The trading today was an inside candle to the previous day, hence does not indicate a clear direction. The wider range to be watched is 15769 - 15960 for Nifty and 34406 to 35150 for Bank Nifty. A breach of this ra...

23rd Jul'2021 (Evening)  --  | Written on 25th Jul at 6.15 PM | Both Nifty and Bank Nifty opened higher on Friday and got sold immediately. However, they got support in the first hour itself and started rising.  Nifty opened at 15856 and made a low of 15768. Bank Nifty opened at 34748 and made a low of 34404. However, Nifty after rising from these lows again got sold off at the end and closed flat. Bank Nifty though rose on the base of sharp short covering and closed marginally above its its resistance at 35000. On Friday morning i mentioned that Nifty may make a move towards 15920, it actually fell short of 20 points. While Bank Nifty I mentioned is strong above 35000 and it closed above this level. On a daily chart, Nifty has made a Doji candle and Bank Nifty has made a bullish candle. Though behind the obvious now, Nifty made a long buildup and Bank Nifty made a short covering on the futures side. So from here, a follow through on both the indices is important to be wa...

20th Jul'2021 (Evening)  -- | Written on 21st Jul'2021 at 10.15PM | Markets again opened to very weak global cues on Tuesday. Indices after opening gap down, were  continuously sold off and Both Nifty and Bank Nifty made long bearish candles on a daily chart. While Nifty showed some support at the lower levels, Bank Nifty closed at the lower end of the trading range on Tuesday. Both Nifty and Bank Nifty breached the important support levels of 15645 and 35650 indicated in the previous notes. Nifty actually went as low as 15578, it actually picked some support and closed marginally below this support level. Bank Nifty however, di not get much support and closed at 34415, much below 35650. The levels of support for Nifty and Bank Nifty would be as below : Nifty 15578 (Tuesday low), 15505, 15450 Bank Nifty 34357 (Tuesday low), 33937 While the sentiment in the global markets has changed. With Europe and US both showing a strong recovery from the lows of Monday, this could lead to ...

19th July'2021 (Evening) -- | Written at 11.30PM | As expected and mentioned in yesterdays notes, Indices opened gap down and opened precisely at the second level support (First I mentioned will be breached in the gap down itself). First reaction was a bit of pull back with some rise on the indices and then came the second round of selling, taking the indices down again. With some recovery at the day end, both the indices made Doji kind of candles, indicating a lack of direction from the current levels. This uncertainty is driven from selling by FII at higher levels and buying by DII at lower levels. This continued today as well. FII though are now extremely bearish and again reversed their positions in the FnO segment, while selling heavily in cash. The Global sentiment was extremely weak today and this continued into European and US markets. Europe closed almost 2% down and US is trading 2% down as of now.  A continuous slide in these markets is driven from recovery concerns on t...

16th July'2021 (Evening)  --  | Written on 18th July'2021 at 08.15PM | The indices opened extremely strong on Friday. Nifty was above 16000 in the preopening on Friday. Nifty opened at 15958 (a new All time high) and Bank Nifty opened at 35977. Both the indices broke their resistance zones and gave a much awaited breakout.  However, post the opening both the indices were sold and started declining. While Nifty saw a long unwinding on the futures side, Bank Nifty actually saw a short buildup at these levels. So the opening levels were the day high for both the indices. Nifty saw an intraday sell off of some 80 points, Bank Nifty saw a sell off close to 300 points. Important is that Nifty covered a good 40 points out of this. Bank Nifty could recover some 80 points. While Nifty closed above its long time resistance zone (Nifty actually made a new closing high of 15923), Bank Nifty closed below its resistance at 35800. Now, a follow through is important to be watched. FII ag...

14th July'2021 (Evening)  -- | Written at 10.15PM | Our markets opened to weak Asian Cues, Nifty opened flat and Bank Nifty slightly lower. However, both indices consolidated throughout the day and inched towards a higher close. Both the indices though ended up making a Doji kind of candle on a daily chart. Although Nifty candle was a bit more longer. Volume today was lower and the participation seems to be withdrawn / uncertain due to lack of direction. FII turned net sellers again and DII bought again today, almost in a perfect Ballet. As mentioned yesterday a follow through was required today to confirm the bullishness from FII side. While FII did create some longs, it lacked support from cash side. On the options side, FII did unwound calls and sold puts, they hedged their positions by buying a good amount of puts as well. Over all the stance from the FII side in the FnO side is bullish.  Looking at the low VIX and lack of any aggressive options long positions, i feel the ...

13th July'2021 (Evening)  --  | Written at 10.15PM | Indian indices opened strong today and consolidated through the day. Following strong global cues and the inflation data released yesterday. Indian indices celebrated the better than expected Inflation numbers. Especially BankNifty was stronger than Nifty today. While Nifty saw some long buildup, Bank Nifty saw short covering. Heavy call writing and shorts created in the system, saw a shakeout and Some good amount of put writing was seen. Both Nifty and Bank Nifty made bullish candles on the daily chart with Nifty having a long lower shadow. Indicating strength at the lows. FII turned net buyers after some time. Though for small amount, both FII and DII were buyers and supported the rise of the indices. FII created some 13000 longs and unwound 18000 shorts, indicating a change in their stance. They also unwound calls and wrote puts, indicating bullishness in the options area as well. after some time, a good amount of put wri...

12th July'2021 (Evening) As expected and mentioned yesterday, the Indian markets opened gap up. Responding to strong global cues coming in from US close on Friday and strong Asian markets, the gap opening level was maintained for quite some time. Though the markets were more or less flat for a major part of the day, there was a bit of selling in the last two hours. However, the support came in quickly near yesterday's lows and markets recovered a bit. Both indices made bearish candles on the daily chart. BankNifty made a Doji, while Nifty made a long bearish candle with short upper and lower shadows. Market seemed to be uncertain and lacked a direction. The Cues coming in from US futures turned slightly negative intraday, but quickly recovered and our markets were more or less playing to their tune. The FII and DII Ballet continued today with FII selling on higher levels and DII buying in at lower levels. The FII though created some longs today and unwound some shorts. These sh...

9th Jul'2021 (Evening) -- | Written at 9.15PM on 11th Jul | Following global cues, especially from US, Indian indices opened gap down on Friday, however did not slip much from there and started stabilizing gradually. More or less they kept dancing to the tune of US futures. Intraday they fell and then made a quick rise to the opening levels, however, could not go above the Thursday close and were rejected twice from those levels. There seemed to be some nervousness on the global sentiment.  This led to some strong call writing and also some shorting by the FII's. Heavy call writing was seen at Friday's high levels.  This however changed in the evening with Europe closing in green and US recovering strongly from their Thursday lows. Dow closed 400 point up from the level at which we closed on Friday. The global economic numbers declared last week were mixed and kind of imparted some volatility to our markets as well. However, on a weekly chart, Nifty made bearish candle and ...

7th Jul' 2021 (Evening)  --  | Written 10.00PM | 1. FII were net buyers for 532 Cr today, while DII were sellers for 231 Cr. A net buying of 301 Cr from the institutional side. 2. FII's unwound 5875 longs and unwound 1393 shorts on the indices 3. On the option front FII  sold 28354 calls and   sold 48219 puts. They also bought 32195 calls and  bought 46971 Puts. 4. For next week expiry, Nifty has the highest OI for PE at 15800 followed by 15700 and highest OI for CE is at 16000 followed by 15900. Highest Put writing was seen at 15800 and highest call writing was seen at 16100 levels. 5. For the next week expiry, Bank Nifty has the highest OI for PE at 35000 followed by 35500 and highest OI for CE is at 36000 followed by 36500. Highest Put writing was seen at 35700 and highest call writing was seen at 35900 levels.  6. Asian markets closed mostly in red while Europe closed mostly in green 7. US markets trading flat 8. The breadth of the market was stron...

6th July'2021 (Evening)  -- | Written at 10.00PM | As mentioned yesterday, Stock specific longs were in Financials and BankNifty turned to be the mover today. Nifty and Bank Nifty immediately after opening consolidated their way up. Nifty touched its ATH at 15915 and Bank Nifty made a high of 35807. Bank Nifty was the prime mover and the only major index to make a move today. It seemed as if the Bulls chose this index and some specific stocks to push Nifty up. Bank Nifty made a decent move of 600 plus points and closed with 350 points gain. Both Indices however, saw a sharp selling from their highs today. While Nifty gave away almost all its gains, Bank Nifty gave away 250 points from its highs. The indices made a bullish candle with a large shadow on the top, indicating selling at the highs. FII again sold for 500Cr plus and DII bought for 500Cr plus, so the ballet continues. In the FnO area, FII created some 4000 longs and created some 1000 shorts. Sold 13600 Calls and sold 16600...

5th July'2021 (Evening)  -- Written at 11.00PM Indian indices opened gap up today and consolidated their gains for the day. as mentioned yesterday, Both Indices halted at their first resistance levels. Nifty made a high of 15845 and BankNifty made a high of 35234.  Both indices made bullish candles on a daily chart and closed near their day high indicating strength. However, both are also very close to their resistances as well. If Nifty takes out 15840 tomorrow, a rise towards 15915 is possible and BankNifty if takes down, 35200 may make a move towards 35600. Please refer my post yesterdays notes for a better understanding on current levels on the indices. I do not see the levels disturbed much. The volumes though were low today. This could be due to a lower participation from the FII as the US markets are closed today and their activity may see a rise tomorrow. In the cash market FII sold for 338Cr and DII bought for 645Cr, so the pattern continues. On the FnO side, FII were...

2nd July'2021 (Evening) --  | Written on 4th July - 8.15PM | Markets on Friday opened flat and then consolidated for a while before showing some signs of recovery. While Nifty and BankNifty, both, did rise and closed above its opening level and made a small bullish candle on the daily chart. Actually, Nifty seems stronger. Analyzing the charts on multiple time frames, we see, On an hourly chart, Nifty has kind of made a decent recovery and BankNifty has topped again. The closing of Nifty was slightly above its 20DEMA at 15682 (while intraday it went lower) and BankNifty inspite of making a slightly bullish candle, closed below its 20DEMA at 34849. 50DEMA for Nifty stands at 15399 (it does'nt seem to be going there). 50DEMA of BankNifty stands at 34426 and is a possible level. Swing supports for Nifty may get revised to Friday's low if reversal is confirmed tomorrow, While for BankNifty the swing support stays at 34525. Technically the MACD on weekly chart shows exhaustion f...

1st Jul' 2021 (Evening) - 10.40PM In spite of opening to a strong US handover, the morning saw a weak Asian setup. After opening slightly weak today, the indices continuously came down and closed at the low point of the day. While intraday, there was an attempts to hold the market, it could not sustain and selling resumed. While the loss was not huge, the indices did see a range of 88 points on Nifty and 267 points on BankNifty. Weakness was apparent in the market. FII again sold for a good 1000Cr plus and DII bought for (approx) 900Cr. So the pattern continues.  Yesterday, FII's had created some longs, however, they were kind of nullified today. While for some time, the FII were only unwinding longs, they created some shorts today.  All in all, the first trading day of July was not a great one. It could be an indication of a short term weakness in the indices. Since the last four days now, both Nifty and BankNifty have been making bearish candles on a daily chart. A weakness ...