3rd Aug' 2021 (Evening)

3rd Aug' 2021 (Evening)  --  | Written at 10.15 PM |

  • Nifty 
    • So finally it was a historic day today. Nifty took off 16000 and what a way it was, once taken off, it directly landed and closed at 16130. It took almost 120 days of consolidation for Nifty to move from 15000 to 16000.
    • After that small bullish candle made yesterday, It took off today right from the morning and never looked back. A strong bullish candle was made on the daily chart.
  • Bank Nifty 
    • Bank Nifty also followed Nifty today and made a strong move to close at 35207. Driven by a short covering move, it made a rapid move in the second half losing almost 15% OI.
    • After a small bearish candle yesterday, Bank Nifty also made a strong bullish candle on the daily chart today.
  • FII bought for 2000Cr today in the cash market and DII sold for a small amount of 298Cr. A stance shift today. Important to note here is that the FII participation has been particularly weak during this move from 15000 to 16000 on Nifty.
  • On the FnO side, FII switched approx 30000 positions on Index futures in favor of longs. 
  • It is now important to watch a follow through  of this move tomorrow. I would kind of watch for a confirmation of this work out in two ways :
    • A close above todays close, with a higher high and a higher low tomorrow. 
    • A second testing and reversal from 15900as a confirmation for 15900 to be a new support.
    • If it moves towards 15900-16000 levels, these dips can be bought with 15900 as stop loss.
    • Once we see this a new range for Nifty would be established.
    • If 15900 is breached, we may see some weakness and a move towards 15600 as earlier.
  • The options OI indicate a strong support for Nifty at 16000 and for Bank Nifty at 35000. Though, for Bank Nifty i would watch for a buildup above 35200. A long at this level may give a good risk reward with 34800 as a stop loss. Any dip towards this can be bought.
  • Dollar Index and US yields are low and this is a good sign for our markets.
  • Yesterdays events were mixed with bearish indications from US PMI and Caixin mfg PMI and a strong German Mfg PMI.
  • Would be curious to watch for an interesting day tomorrow.

1. FII were net buyers for 2116 Cr today, while DII were sellers for 298 Cr. A net buying of 1818 Cr from the institutional side.

2. FII's created 18994 longs and unwound 12182 shorts on the index futures

3. On the option front FII  sold 22344 calls and   sold 92606 puts. They also bought 74042 calls and  bought 102805 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 15900 followed by 16000 and highest OI for CE is at 16200 followed by 16300. Highest Put writing was seen at 16000 and highest call writing was seen at no reasonable levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 35000 followed by 33500 and highest OI for CE is at 35000 followed by 36000. Highest Put writing was seen at 35000 and highest call writing was seen at no reasonable levels. 

6. Asian markets closed mixed and Europe also closed mixed

7. US markets trading in green as of now

8. The breadth of the market was positive

9. Nifty opened at 15951 and made an intra day high of 16146 and a low of 15914 before closing at 16130 .The range of Nifty for the day was 232 points.

10. Bank Nifty opened at 34660 and made an intra day high of 35238 and a low of 34649 before closing at 35207 .The range of Nifty for the day was 589 points.

11. US Dollar Index is trading at 92.078

12. Except media and Metals, almost all sectors made decent gains

13. India VIX reduced to 12.80

14. US 10Y yields are at 1.172

15. Nifty futures saw long buildup

16. Bank Nifty saw short covering


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