5th Aug'2021 (Evening)

5th Aug'2021 (Evening)  --  | Written at 10.30PM |

  • Nifty
    • After the stellar move over the last two days, Nifty took a breather today. Nifty made a small bearish Doji kind of a candle on a daily chart. Indicating some uncertainty.
    • After touching 16380 intraday, it closed at a new all time high of 16294. Important is to see, which side is protected tomorrow, todays low of 16210 or todays high of 16380.
    • Generally speaking a breach on the higher side may elevate the inde to 16400-16500 level while a breach on the lower side, may make it test 16200 again.
  • Bank Nifty 
    • After the two day move, Bank Nifty lacked strength today. After opening slightly higher, it lacked strength and started sliding. While it did pick up some support at 35661, making a 200 point recovery, it made a bearish candle on a daily chart, closing at 35834.
    • Bank Nifty seems to be weaker than Nifty and there are good reasons for it to be like this.
  • FII again sold for 700Cr today and DII bought the same. Both are again in their respective stance that they were following for some time. 
  • On the FnO side, FII unwound a small number of longs and created some shorts. on the options side, the Index data was not relevant today (being expiry), on the stock options side , their stance was mildly bearish as well.
  • Global markets were mixed today, though US as of now is trading in a positive zone.
  • Options data for the next week is indicating a support for Nifty at the current levels, while BankNifty has support at 35000 and resistance at 36000, creating a zone of around 1000 points.
  • Nifty Support 
    • Nifty first support 16200.
    • Nifty Second support at 16000
    • Bank Nifty First support at 35600
    • BankNifty second support at 35200
    • Nifty Resistance at 16380
    • BankNifty resistance at 36100
  • Nifty weak only below 15900 and BankNifty below 34800. Keep these levels in mind when taking a position as per the risk reward and risk carrying capacity.
  • Keep leverage in control, when taking any positions at the current level. I have sold straddle of 35500 and 16300 on Nifty and Bank Nifty respectively and collected a decent premium. However, the position size is such that it can be covered in cash on any side.
  • The US yields and Dollar Index is in a reasonable range.
  • Initial jobless claims in US have come out to be slightly more than expected, though market has brushed this apart.
  • Our markets would be keeping an eye on the RBI meeting and its outcome tomorrow. Any substantial changes to rates is not expected, important would be to watch the commentary from the BBI Governor.
  • When Nifty is at all time high, The broader market is underperforming. So this may be an important cue. The last leg of this rally was actually driven by a few stocks. 

1. FII were net sellers for 719 Cr today, while DII were buyers for 731 Cr. A net buying of 12 Cr from the institutional side.

2. FII's unwound 408 longs and created 3734 shorts on the index futures

3. On the option front FII  sold 137721 calls and   sold 138562 puts. They also bought 139773 calls and  bought 146055 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 16300 followed by 16200 and highest OI for CE is at 16300 followed by 16500. Highest Put writing was seen at 16300 and highest call writing was seen at 16300 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 36000 followed by 36500. Highest Put writing was seen at 35000 and highest call writing was seen at 36000 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 negative

9. Nifty opened at 16288 and made an intra day high of 16349 and a low of 16210 before closing at 16294 .The range of Nifty for the day was 139 points.

10. Bank Nifty opened at 36093 and made an intra day high of 36115 and a low of 35661 before closing at 35834 .The range of Nifty for the day was 454 points.

11. US Dollar Index is trading at 92.243

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

13. India VIX reduced to 12.87

14. US 10Y yields are at 1.210

15. Nifty futures saw long buildup

16. Bank Nifty saw short buildup


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