27th July'2021 (Evening)

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 match the selling by FII and the markets saw a net 730Cr of selling from institutional side.
• FII also were extremely bearish on the FnO side. They created close to 11000 shorts and just 3000 longs on index futures. This takes their net long position to 57:43 now. They also sold close to 48000 calls and hardly sold any puts.
• Europe closed in red today and US is trading in red as of now. The US closing today will set the tone for Asian Cues tomorrow morning and this needs to be watched.
• Dollar Index and US Yields continue to be within a reasonable limit.
• The FED talks and its outcome tomorrow is important for the next move of the market. We will probably react to it on Thursday morning, our weekly and month expiry day.
• The consumer confidence index for US surprisingly came out positive at 129.1 against a  forecast of 123.1. So a welcome cue for short term.
• The options OI today indicate a trading range of 15700-15800 and 34000-35000. Though i see support at the following levels :
• Nifty 15680 and 15580 levels.
• Bank Nifty 34680 and 34400. 
• While i do not expect these levels to be breached tomorrow, if they do then the earlier levels of 15450 and 33900 hold as strong supports.
• On the upside the resistances would come in at 15800 and 35000 levels on Nifty and BankNifty respectively.
• India VIX has expanded slightly and being the last week of the month, we may see some volatility in the next days.

1. FII were net sellers for 1459 Cr today, while DII were buyers for 729 Cr. A net selling of 730 Cr from the institutional side.

2. FII's created 2936 longs and created 10730 shorts on the index futures

3. On the option front FII  sold 47785 calls and   sold 733 puts. They also bought 35097 calls and  bought 54205 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 15900. Highest Put writing was seen at no reasonable level and highest call writing was seen at 15800 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 33500 followed by 34000 and highest OI for CE is at 35000 followed by 35500. Highest Put writing was seen at 34500 and highest call writing was seen at 34800 levels. 

6. Asian markets closed mostly in red and Europe closed in red

7. US markets trading in red as of now.

8. The breadth of the market was extremely weak today

9. Nifty opened at 15860 and made an intra day high of 15881 and a low of 15701 before closing at 15746 .The range of Nifty for the day was 180 points.

10. Bank Nifty opened at 35029 and made an intra day high of 35186 and a low of 34713 before closing at 34797 .The range of Nifty for the day was 473 points.

11. US Dollar Index is trading at 92.362

12. Except metals and banking almost all sectors closed in red

13. India VIX increased to 13.23

14. US 10Y yields are at 1.236

15. Nifty futures saw short buildup

16. Bank Nifty saw short buildup