9th Jul'2021 (Evening)

9th Jul'2021 (Evening) -- | Written at 9.15PM on 11th Jul |

  • Following global cues, especially from US, Indian indices opened gap down on Friday, however did not slip much from there and started stabilizing gradually. More or less they kept dancing to the tune of US futures.
  • Intraday they fell and then made a quick rise to the opening levels, however, could not go above the Thursday close and were rejected twice from those levels. There seemed to be some nervousness on the global sentiment. 
  • This led to some strong call writing and also some shorting by the FII's. Heavy call writing was seen at Friday's high levels. 
  • This however changed in the evening with Europe closing in green and US recovering strongly from their Thursday lows. Dow closed 400 point up from the level at which we closed on Friday.
  • The global economic numbers declared last week were mixed and kind of imparted some volatility to our markets as well. However, on a weekly chart, Nifty made bearish candle and BankNifty made an inverted hammer, indicating rejection at higher levels. 
  • Nifty still hovering between 15450 and 15900, BankNifty between 34500 and 35500. As mentioned the range continues.
  • With a strong recovery seen on Friday in US, we may see a gap up opening tomorrow morning. However, it is important to see if this is sustained. A sustenance of it may lead to some good short covering.
  • A selling off at that level may indicate sustained weakness in our indices. Though this does not mean a sell off immediately. Nifty weak only below 15450 and BankNifty gets weaker only below 34000.
  • Buying dips with these levels as stop losses can be a good strategy for positional traders.
  • For aggressive traders, immediate indicators could be Friday's high and low. However, as mentioned above do watch the opening action tomorrow.
  • FII sold in cash and DII bought in cash. Same pattern again. However, FII also created some fresh shorts and unwound some longs. This compliments bearish behavior from them. This tug off war between the institutions continues. 
  • Options OI indicates a trading range of 15700 to 15900 for Nifty and 35000 to 36000 for BankNifty. A short build up on BankNifty in futures indicates weakness on banking as compared to the larger index Nifty.
  • On the events this week. Watch for British CPI and US PPI on Wednesday. Chinese GDP and IIP on Thursday. Japan Bank economic statement and Retails sales numbers from US.
  • Also, keep a watch on the Covid numbers. A slight rise in the R ratio and cases is a concern. Globally Delta variant is already being seen as a concern and led to some dips in the Global markets.
  • Wish you all a Happy trading week ahead.
1. FII were net sellers for 1124 Cr today, while DII were buyers for 106 Cr. A net selling of 1018 Cr from the institutional side.

2. FII's unwound 2268 longs and created 2910 shorts on the indices

3. On the option front FII  sold 101524 calls and   sold 25938 puts. They also bought 123128 calls and  bought 65615 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 15700 followed by 15600 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 35000 followed by 34500 and highest OI for CE is at 36000 followed by 35500. Highest Put writing was seen at 35000 and highest call writing was seen at 35000 levels. 

6. Asian markets closed mixed and Europe closed in green

7. US markets closed strong on Friday

8. The breadth of the market was strong today.

9. Nifty opened at 15688 and made an intra day high of 15730 and a low of 15632 before closing at 15689 .The range of Nifty for the day was 98 points.

10. Bank Nifty opened at 35163 and made an intra day high of 35225 and a low of 34859 before closing at 35071 .The range of Nifty for the day was 366 points.

11. US Dollar Index is trading at 92.102

12. Except Metals and Realty led the show, while Banking and Energy were laggards

13. India VIX reduced to 12.94

14. US 10Y yields are at 1.361

15. Nifty futures saw long unwinding

16. Bank Nifty saw short buildup


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