13th July'2021 (Evening)

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 writing was seen today. For Nifty at 15800 and for Bank Nifty at 35500 levels. 
  • Money was moved out of defensives sectors like FMCG and IT, was put into Banking and financial stocks. 
  • Well with all this euphoria, comes some negative news as well. US CPI data was released today and it raised some inflationary concerns again in US. The US stocks were a bit subdued. Nasdaq if strong and DOW is flat. 
  • The key is now that will our markets see a follow through tomorrow, on the bullish stance taken today. The strong resistance still sits at 15915 for Nifty and 35800 for BankNifty. The larger question is, will these be taken out this time?
  • The Dollar Index has again raised slightly, though US Yields is under control. Oil is again on the rise and this is negative for us.
  • Covid continues to be a concern for the Asian markets as of now, with concerns emanating from Japan, Indonesia among some countries. Keep watching this.
  • Watch for British CPI and US PPI tomorrow. While Europe has been saying that inflation is not a concern for them, lets watch this for UK tomorrow and also growth in Industrial production in US. 
  • From tomorrow till Friday, this week is loaded with important data coming in from UK, US, China and Japan. So important three days ahead.
  • Until breached on either side, range of Indices remain same. Nifty 15650-15900 and BankNifty 34500-35800. However, as mentioned earlier, Nifty weak only below 15450 and BankNifty weak only below 33900. Till then buy on dips works.
  • My bias though would be bullish this time.

1. FII were net buyers for 113 Cr today, while DII were buyers for 344 Cr. A net buying of 457 Cr from the institutional side.

2. FII's created 13156 longs and unwound 18112 shorts on the indices

3. On the option front FII  unwound 24977 calls and   sold 43067 puts. They also unwound 8993 calls and  unwound 26782 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 15700 followed by 15800 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 15950 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 35500 followed by 35000 and highest OI for CE is at 36000 followed by 36500. Highest Put writing was seen at 35500 and highest call writing was seen at 35700 levels. 

6. Asian markets closed in green and Europe closed flat

7. US markets trading mixed as of now. Dow mildly in red and Nasdaq in green

8. The breadth of the market was strong today.

9. Nifty opened at 15794 and made an intra day high of 15820 and a low of 15744 before closing at 15812 .The range of Nifty for the day was 76 points.

10. Bank Nifty opened at 35480 and made an intra day high of 35727 and a low of 35340 before closing at 35673 .The range of Nifty for the day was 387 points.

11. US Dollar Index is trading at 92.582

12. Except IT and FMCG, most of the leading indices closed in green

13. India VIX reduced to 12.62

14. US 10Y yields are at 1.363

15. Nifty futures saw long buildup

16. Bank Nifty saw short covering


Comments

Post a Comment

Popular posts from this blog

4th November' 2022 (Evening)

Image
4th November' 2022 (Evening)   --  | Written at 8.00 PM on 6th November' 2022  | Publishing the notes after a gap today. So first sorry for that. Having a full time day job, brings its own set of challenges and sometimes, the work pressure makes it extremely difficult to squeeze time to analyze and publish the analysis. I mentioned in the previous notes that a major resistance at 17900 will be breached and advised to watch the price action. The indices pleasantly obliged and have been holding strong at these levels. On Friday also, #Nifty made a strong bullish candle on the daily chart. It has also ended the weekly candle strong on a bullish note. #BankNifty is showing some exhaustion and is witnessing a brutal tug off war between bulls and bears. We will discuss all this, but before that, levels... From the levels above, 18200 seems to be a resistance level for #Nifty and 41550 the resistance for #BankNifty. However, if we compare the range of first support to first...
Read more

28th October' 2022 (Evening)

Image
28th October' 2022 (Evening)   --   |  Written at 9.30 PM on 30th October' 2022   | The last month closed on a high note. Starting weak, the month of October saw decent gains and closed almost at month highs. Market was still strong and on the first day of the current series also, the indices were relatively strong.  #Nifty made 4 consecutive bullish candles on the daily chart. #BankNifty made a bearish candle after 3 bullish candles, however still made a higher high and a higher low. Levels : Both #Nifty and #BankNifty are in a range of 17650 to 17900 and 39825 to 41550 respectively. In this range #BankNifty saw some profit booking on Friday, while #Nifty is yet to test the upper level. I expected #Nifty to test 17900 on Friday, however this did not happen. This may probably get breached in the opening tomorrow. Important to see is that will this trigger a profit booking and a rejection of the level or will the level hold. On Friday, the first tr...
Read more

25th October' 2022 (Evening)

25th October' 2022 (Evening)   --   |  Written at 11.00 PM on 26th October' 2022  | 1. FII were net selling for 247 Cr today, while DII were buyers for 872 Cr. A net buying of 625 Cr from the institutional side. 2. FII's created 1390 longs and unwound 17862 shorts on the index futures 3. On the option front FII  unwound 7656 short calls and   unwound 28440 short puts. They also closed 34543 long calls and  closed 96232 long Puts. 4. For next week expiry, Nifty has the highest OI for PE at 17500 followed by 17600 and highest OI for CE is at 18000 followed by 17800. Highest Put writing was seen at 17700 and highest call writing was seen at 17800 levels. 5. For the next week expiry, Bank Nifty has the highest OI for PE at 40000 followed by 40500 and highest OI for CE is at 42000 followed by 41500. Highest Put writing was seen at 41100 and highest call writing was seen at 41500 levels.  6. Asian markets closed mostly in green today and ...
Read more