27th Aug'2021 (Evening)

27th Aug'2021 (Evening) -- | Written on 29th at 11.15PM |

  • First of all apologies for not being able to post my notes for the last three weeks. Days filled with mixed feelings kept me engaged.
  • Aug series resulted in an expansion of approx 1000 points on Nifty, however, kept Bank Nifty constrained in a tight rage of approx 1000 points and capped at 36300 on the top side.
  • The sentiment kept seeing some see saw movements, however overall the bulls rode the indices with Nifty gaining 6%, Bank Nifty gaining 2.4%, Mid cap gaining 0.9% and Small Cap losing 3.8%.
  • Following US, Indices in the last week were trading cautiously, waiting for the FED direction expected on Friday. The outcome finally was a reliever and US indices made some strong moves on Friday.
  • Nifty
    • Nifty opened flattish on Friday, lost some ground losing 157 points, got support at 16565 and gained quickly to close strong at 16705.
    • Making a strong bullish candle with a large lower shadow, it indicates support at 16560 and strength ahead.
    • Support
      • First support at 16600
      • Second support at 16495
    • Resistance
      • Friday high of 16720 (Expected to be breached on opening)
      • Difficult to predict as of now.
  • Bank Nifty
    • Bank Nifty opened flattish as well, made some small gains and then corrected by almost 350 points, picked support at 35359, consolidated and closed at 35627.
    • Making a bullish candle with long upper and lower shadows, this still shows a rangebound movement and a ack of direction.
    • On a monthly chart though, i feel that BankNifty has been giving signs of a breakout some time and if this happens, I expect a strong catchup move.
    • Support 
      • First support at 35362
      • Second support at 35000
    • Resistance 
      • First resistance at 35724 (Expected to be taken off in opening)
      • Second resistance at 35910
      • Strong resistance at 36300
  • FII on Friday sold for 778 Cr, continuing their selling spree. However, the DII bought for a good 1600 Cr. This elevated the indices and provided strong support.
  • On the FnO side though FII made bullish positions with creating a good number of longs and a negligible shorts. On the options front also the bias was bullish.
  • The options OI indicate support 16600 on Nifty and 35500 on BankNifty.
  • After the FED speech on Friday, the US markets picked up momentum and made some strong gains. All major global markets would react to this on Monday. Our markets are expected to open gap up. What is to be seen is whether this is sold off or gets sustained.
  • Would be important to watch the global cues coming in from US futures and the Asian markets.
  • Dollar Index has eased out lately and is now in more comfortable range at 92.7. The US 10 Y yields also continue to be stable.
  • A surge in Covid cases globally and in India has created a sense of caution, though as of now the bulls seem to be ignoring the same.
  • Coming week is an event loaded week, Watch for these important events next week. Pending home sales from US on Monday, Chinese Mfg PMI, Europe CPI and US consumer Index on Tuesday, German and British Mfg PMI, US Mfg PMI and US non farm payrolls on Wednesday, British services and composite PMI, US Non farm payrolls and US non Mfg PMI on Friday.
  •  Wish you a fruitful trading week ahead.

1. FII were net sellers for 778 Cr today, while DII were buyers for 1646 Cr. A net buying of 868 Cr from the institutional side.

2. FII's created 5135 longs and created 243 shorts on the index futures

3. On the option front FII  sold 40237 calls and   sold 50325 puts. They also bought 38260 calls and  bought 54540 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 16600 followed by 16500 and highest OI for CE is at 16700 followed by 17000. Highest Put writing was seen at 16700 and highest call writing was seen at 16700-17000 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 35500 and highest call writing was seen at 35500-36500 levels. 

6. Asian markets closed mixed and Europe closed in green on Friday

7. US closed strong on Friday.

8. The breadth of the market was strong on Friday

9. Nifty opened at 16642 and made an intra day high of 16722 and a low of 16565 before closing at 16705 .The range of Nifty for the day was 157 points.

10. Bank Nifty opened at 35559 and made an intra day high of 35727 and a low of 35359 before closing at 35627 .The range of Nifty for the day was 368 points.

11. US Dollar Index is trading at 92.690

12. Almost all sectors closed in green on Friday

13. India VIX reduced to 13.41

14. US 10Y yields are at 1.310

15. Nifty futures saw long buildup

16. Bank Nifty saw long buildup


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