31st Aug'2021 (Evening)

31st Aug'2021 (Evening)  --  | Written at 11.00PM |

  • Wow, what a day it was today. Nifty made historical gains, it not only breached 17000, it actually pierced through it and closed at 17132. A 400 point gain in two days.
  • The global risk on triggered on Friday, provided the necessary impetus and confidence to make this achievement.
  • Nifty 
    • Nifty opened almost flat, consolidated a bit and then zoomed up. Faced some resistance at 17000 and then pierced through to close 130 points above 17000. It made a strong bullish candle on the daily chart.
    •  Support 
      • First support at 17050
      • Second support at 16900
    • Resistance
      • First resistance at 17150
      • Second resistance at 17300
  • Bank Nifty
    • Bank Nifty opened flattish as well, However, consolidated for the whole day in a tight range. 
    • Being clue less on direction for the whole day, it actually made a Doji kind of uncertain (though bullish) candle.
    • Support 
      • First support at 36230
      • Second support at 35980
      • Third support at 35720
    • Resistance 
      • First Resistance at 36550
      • Second resistance at 37250
    • BankNifty could actually prove to be an important index now. If 36500 is taken out, we could see a strong rally towards 37250, providing another 100 point move on Nifty.
  • FII made strong cash buying of 3900 Cr today. This is second consecutive day of buying from the FII side. As tweeted yesterday, this could be a return of capital, this needs to be confirmed though. 
  • The FII also simultaneously took bullish position on the FnO side. Their positions on stock long were extremely bullish, indicating a strong stock specific action. Most probably these stocks seems to be Reliance, Bharati and some select stocks in Metals and Financials like BajajFinance.
  • DII though sold for 1900Cr today. A change in the stance of FII and DII.
  • Options OI indicate a support at 17000 for Nifty and 36500 for Bank Nifty.
  • The Dollar Index and US yields continue to be in a comfortable range at 92.66 and 1.3.
  • The Chinese Mfg PMI was slightly lower than expected and the US Consumer confidence is a little pessimistic than expected. This could provide a reason for a short term consolidation to set in. This is anyways expected for us after a strong up move in the last days.
  • The GDP numbers released today for India were slightly better than expectations. Mfg sector was the bright spot. lets see how our markets react tomorrow.

1. FII were net buyers for 3881 Cr today, while DII were sellers for 1872 Cr. A net buying of 2009 Cr from the institutional side.

2. FII's created 4162 longs and created 1318 shorts on the index futures

3. On the option front FII  sold 91685 calls and   sold 129866 puts. They also bought 117562 calls and  bought 144340 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 16900 and highest OI for CE is at 17100 followed by 17300. Highest Put writing was seen at 17000 and highest call writing was seen at 17100-17500 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 36000 followed by 35500 and highest OI for CE is at 37000 followed by 36500. Highest Put writing was seen at 36500 and highest call writing was seen at 36500 levels. 

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

7. US trading flat

8. The breadth of the market was extremely strong today.

9. Nifty opened at 16947 and made an intra day high of 17153 and a low of 16915 before closing at 17132 .The range of Nifty for the day was 238 points.

10. Bank Nifty opened at 36367 and made an intra day high of 36552 and a low of 36216 before closing at 36424 .The range of Nifty for the day was 336 points.

11. US Dollar Index is trading at 92.660

12. Almost all sectors closed in green today, with Metals and IT leading the pack.

13. India VIX increased to 14.52

14. US 10Y yields are at 1.300

15. Nifty futures saw long buildup

16. Bank Nifty saw long buildup


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