6th July'2021 (Evening)

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 Puts. So kind of slight strength, probably drive from the move today.
  • While Bank Nifty saw some short covering, Nifty actually saw a short buildup. A follow through long buildup tomorrow on Bank Nifty may confirm strength. I doubt this will happen.
  • US markets are down today after reopening. Dow is specially down by more than 300 points as of now. At one point it was almost 400 point down. Nasdaq and S&P are also marginally down. We need to watch the US closing and its future tomorrow. Europe also closed in red today. If US does not recover, we may wake up to a weak handover tomorrow. 
  • The range for the market remains the same. Nifty has support at 15650 and then at 15450, while Bank Nifty has support at 34650 and 33900. On the upside Nifty is capped again at 15900 and BankNIfty at 35800.
  • The options OI compliments the above levels. VIX continues to be low and thus the options premiums are low and concentrated in a low bandwidth.
  • Dollar Index has risen sharply to above 92.5 now, though the US 10Y yields have fallen. Oil prices hover around 75Dollars. The US markets were spooked by the OPEC uncertainty and a belief that the increase in Oil prices could lead to volatility.
  • Another reason for DOW to be in pressure is the Non manufacturing PMI from US was weak, leading to a feeling that the economic recovery in US may not be as robust as was being perceived. The German ZEW economic sentiment was also sharply lower, denting the sentiment on the street.
  • Street would now be looking forward to the FOMC minutes tomorrow and the Oil inventory data from US.
  • Would wait to see the US closing today and our opening tomorrow morning before making trading decisions. As of now I see a gap down opening and a bearish outlook for tomorrow. Though this could be another opportunity for people, who missed the current leg.

1. FII were net sellers for 543 Cr today, while DII were buyers for 521 Cr. A net buying of 22 Cr from the institutional side.

2. FII's created 3930 longs and created 1022 shorts on the indices

3. On the option front FII  sold 13693 calls and   sold 16653 puts. They also bought 27905 calls and  bought 22956 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 15650 and highest call writing was seen at 16000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 35000 followed by 34000 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 mixed and Europe closed in red today

7. US markets trading with a negative bias.

8. The breadth of the market was weak today.

9. Nifty opened at 15813 and made an intra day high of 15914 and a low of 15801 before closing at 15818 .The range of Nifty for the day was 113 points.

10. Bank Nifty opened at 35173 and made an intra day high of 35807 and a low of 35165 before closing at 35579 .The range of Nifty for the day was 642 points.

11. US Dollar Index is trading at 92.582

12. only BankNifty led the rally today, supported a bit by the Media. All others indices closedin red.

13. India VIX increased to 12.28

14. US 10Y yields are at 1.367

15. Nifty futures saw short buildup

16. Bank Nifty saw short covering

 

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