14th July'2021 (Evening)

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 Volume today was lower and the participation seems to be withdrawn / uncertain due to lack of direction.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 range bound movements may continue. Though my bias continues to be positive.
  • Tomorrow being an expiry day, markets may see a bit of volatility. These dips can be good entry points for Positional traders. Today's range is within the larger range, i have been mentioning for some time. So the larger range stays intact.
  • Nifty 15650-15900 and BankNifty 34500-35800. Dips towards the lower end of this range could be opportunities to catch the movement towards the higher end of this range.
  • Options OI also kind of indicates a similar range. A god amount of put writing yesterday and today, expresses confidence on the lower side.
  • On the global front British CPI was released today and the numbers were positive. US PPI was also released today and the numbers were extremely positive. However, these seemed to be already priced in as the European and US indices are more or less flat.
  • The next important data point will be the Chinese GDP and Industrial production tomorrow. This could set the mood for Asian markets.
  • Oil prices continue to be high and the US inventory data showed the levels lower than expected. A persistent oil demand could keep the oil prices higher for some time.
  • The Dollar Index at 92.398 has eased and and US yields at 1.369 are stable. 

1. FII were net sellers for 1303 Cr today, while DII were buyers for 1335 Cr. A net buying of 32 Cr from the institutional side.

2. FII's created 3665 longs and created 298 shorts on the indices

3. On the option front FII  unwound 3337 calls and   sold 19819 puts. They also unwound 3844 calls and  bought 22161 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 15900 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 35700 and highest call writing was seen at 35700 levels. 

6. Asian markets closed in red and Europe closed flat to red

7. US markets trading opened strong but trading flat now.

8. The breadth of the market was weak today.

9. Nifty opened at 15808 and made an intra day high of 15877 and a low of 15764 before closing at 15853 .The range of Nifty for the day was 113 points.

10. Bank Nifty opened at 35585 and made an intra day high of 35804 and a low of 35434 before closing at 35668 .The range of Nifty for the day was 370 points.

11. US Dollar Index is trading at 92.398

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

13. India VIX reduced to 12.59

14. US 10Y yields are at 1.369

15. Nifty futures saw long buildup

16. Bank Nifty saw long unwinding


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