1st Jul' 2021 (Evening)

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 tomorrow could complete a bearish candle on a weekly chart as well.
  • Nifty is now just above its 20 DEMA and BankNifty has already breached the same. So levels to be watched remain the same for short term. 
    • Nifty - 15673, 15450
    • BankNifty - 34525, 33908
  • The indices seem to be weak below the second level and may see a deeper correction. However, till the first support levels are protected on a closing basis, a turnaround is definitely on the table. 
  • The VIX continues to be low and is below 13 as of now. The volatility is in line with the Mother markets in US. US is running to its all time high.
  • As of now, Dow is in green and Nasdaq marginally in green. Europe closed green. German PMI was positive, though the British GDP was negative. So kind of mixed.
  • The options OI indicate a support at 15700 and resistance at 15800 for Nifty and support at 34500 and resistance at 35000 for BankNifty.
  • A low VIX is instigating the options sellers to write ATM straddles mostly. This strategy is good, keep an eye on VIX. A wider trading range on options may trigger a higher volatility and VIX. Till then enjoying the premium decay is fine.
  • VIX approaching the lower end of its range may see a reversal at some point, hence the above comment.
  • Market is now waiting for a strong trigger to pull in one direction. Till the above levels are held, buy on dips works.

1. FII were net sellers for 1245 Cr today, while DII were buyers for 880 Cr. A net selling of 365 Cr from the institutional side.

2. FII's created 1762 longs and created 5455 shorts on the indices

3. On the option front FII  unwound 103037 calls and   unwound 50885 puts. They also unwound 106776 calls and  unwound 49497 Puts.

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

5. For the next week expiry, Bank Nifty has the highest OI for PE at 34500 followed by 34000 and highest OI for CE is at 35000 followed by 34500. Highest Put writing was seen at 34500 and highest call writing was seen at 34500 levels. 

6. Asian markets closed mixed and Europe closed in green

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

8. The breadth of the market was neutral today

9. Nifty opened at 15755 and made an intra day high of 15755 and a low of 15667 before closing at 15680 .The range of Nifty for the day was 88 points.

10. Bank Nifty opened at 34866 and made an intra day high of 34917 and a low of 34650 before closing at 34684 .The range of Nifty for the day was 267 points.

11. US Dollar Index is trading at 92.523

12. Auto, FMCG and Pharma supported the indices today.

13. India VIX decreased to 12.84

14. US 10Y yields are at 1.480

15. Nifty futures saw short buildup

16. Bank Nifty saw long unwinding


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