9th Aug' 2021 (Evening)

9th Aug' 2021 (Evening) -- | Written at 10.30 pm |

  • Nifty
    • Nifty again opened higher today and then got sold off dipping 140 points to rise again and close marginally below its opening level, making a bearish candle on the daily chart.
    • Nifty made a lower high and a lower low for a second consecutive day. The intraday range was also marginally wider than yesterday.
    • Nifty intraday did breach yesterday's and Friday's low, however it did recover and close above its yesterdays close. If followed up tomorrow, this could be a short term swing low.
    • The higher limit of 16330 was protected today. Watch it for tomorrow. A breach of 16330 may take Nifty to 16380 and further expansion to 16400-16450
    • While a weakness may take it down to 16180 and its breach may trigger a sharp correction to 16000.
  • Bank Nifty
    • Bank Nifty opened higher and also made a similar pattern like Nifty, However, unlike Nifty it did not breach its first 15 min low at any time and then recovered to make a bullish candle on the daily chart.
    • Bank Nifty had a wider range today than yesterday and while it did breach yesterdays low intraday, it protected the Fridays low. As mentioned yesterday this is a good sign.
    • Bank Nifty now seems slightly stronger than Nifty.
    • Bank Nifty level of 36158 is key, watch for a breach. This may elevate BankNifty to 36500 levels and then to 36800 levels. On the lower side, watch for 35680, if this is taken out we may see a dip towards 35450 level.
  • FII today bought in cash and DII sold in cash. A continuation of the pattern triggered yesterday. Now whether this is a confirmation of changed stance, we need to watch tomorrow.
  • FII were kind of neutral in F&O today. So any positioning for a major action tomorrow is not visible.
  • Dollar Index has started inching towards 93 again and poses a strong risk to emerging markets. US 10 Y yields continue to be in 1.3 range.
  • Options OI indicate support at 16200 and resistance at 16300 for Nifty, while it shows a support at 36000 and resistance also at similar levels. So BankNifty is where the battle is on.
  • I tweeted yesterday that Bank Nifty may be preparing for a major move from these levels. If the battle for 36000 is won by bulls, expect to see a major move on Bank Nifty.
  • Nifty
    • Support
      • First support at 16180
      • Second support at 16000
    • Resistance 
      • First at 16330
      • Second at 16380
  • Bank Nifty 
    • Support
      • First support at 35680
      • Second support at 35450
    • Resistance 
      • First at 36200
      • Second at 36500
  • The US job opening data was positive today. Watch for European sentiment tomorrow.

1. FII were net buyers for 211 Cr today, while DII were sellers for 716 Cr. A net selling of 505 Cr from the institutional side.

2. FII's unwound 914 longs and unwound 3505 shorts on the index futures

3. On the option front FII  sold 4316 calls and   sold 3283 puts. They also unwound 23193 calls and  unwound 24181 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 16200 followed by 16000 and highest OI for CE is at 16300 followed by 16400. Highest Put writing was seen at 16100-16200 and highest call writing was seen at 16300 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 36000 followed by 35000 and highest OI for CE is at 36000 followed by 36500. Highest Put writing was seen at 36000 and highest call writing was seen at 36000-36200 levels. 

6. Asian markets closed mixed and Europe also closed mixed

7. US is trading mixed with Dow mildly in red and Nasdaq mildly in green

8. The breadth of the market was negative

9. Nifty opened at 16281 and made an intra day high of 16320 and a low of 16179 before closing at 16258 .The range of Nifty for the day was 141 points.

10. Bank Nifty opened at 35824 and made an intra day high of 36159 and a low of 35612 before closing at 36028 .The range of Nifty for the day was 547 points.

11. US Dollar Index is trading at 92.948

12. Media, IT and Banking stocks made some progress today, while most of the other sectors were in red

13. India VIX unchanged at 12.61

14. US 10Y yields are at 1.315

15. Nifty futures saw long buildup

16. Bank Nifty saw long buildup


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