17th Sep' 2021 (Evening)

17th Sep' 2021 (Evening)  --  | Written at 11.00 PM on 19th Sep |

  • The indices on Friday opened above the levels I had been mentioning for some time and made some decent intraday highs, before seeing some profit booking.
  • Nifty
    • Nifty opened at 17709 and made an intraday high of 17792, got sold off till 17537 and then again recovered to settle at 17629. 
    • Nifty made a bearish candle on the daily chart, indicating a range of 17550 to 17800. We need to watch a move outside this range for picking up a cue on the next course.
    • Support 
      • First support at 17525
      • Second support at 17350
    • Resistance 
      • First resistance at 17660
      • Second resistance at 17790
    • Range of Nifty has widened with an increase in VIX as well. Nifty indicates a trading range of 17350 to 17790
  • Bank Nifty
    • Bank Nifty opened at 37929 and made an intraday high of 38112, got sold off till 37396, then recovered to settle at 37811.
    • Bank Nifty made a Doji kind of candle on a daily chart, indicating a bit of uncertainty beyond the current broad levels.
    • Support
      • First support at 37400
      • Second support at 37000
    • Resistance 
      • First resistance at 38100
      • Second resistance cannot be predicted
    • Bank Nifty has broken out from a multi week high and created a new all time high. It already made a double bottom intraday, indicating a strong buying coming in at lower levels. 
    • Bank Nifty range has also widened compared to recent times. 
  • FII bought for a good 1552 Cr and also created fresh longs in the index futures. They also created bullish position on the options side. A clear synergy building, expecting momentum ahead.
  • The DII however, sold for 1398Cr, so capping the indices on the top side. Thus establishing a broad range for the markets.
  • Bank Nifty Fut witnessed short covering on Friday, while Nifty witnessed some profit booking. It could be that the short covering on Bank Nifty was sponsored through the Profit booking on the other sectors.
  • We need to watch the fresh buildup on Monday to see the next course. At these levels a further expansion is difficult and some consolidation can be expected before that.
  • Globally the European and US markets closed in red, so the sentiment was a bit dented after we closed our markets. This could put some pressure on the opening of our markets. Though, i expect a negative opening  for our markets, fresh global cues coming in tomorrow morning would be vital to watch. 
  • The Options OI indicate a trading range of 17000 to 18000 for Nifty and 37000 to 38000 for Bank Nifty. 
  • There has been sharp rise in Dollar Index over Thu and Fri. Though it is still below the resistance at 93.6, keep an eye at this important level as well. A breakout over 93.6 could provide a good reason for a correction.
  • Last week economic data was mixed, For this week, the most important event is the FOMC statement on Wed. Wed also coincides with Bank of Japan monetary policy statement and Chinese PLR declaration. Would be an interesting day. Mon and Tue, the Chinese markets are closed, with Japan also closed on Monday. Watch for British mfg PMI, Service PMI, BOE interest rate decision and German mfg PMI on Thu. and lastly the jobs data from US.
  • Wish you all a happy trading week ahead.

1. FII were net buyers for 1552 Cr today, while DII were sellers for 1398 Cr. A net buying of 154 Cr from the institutional side.

2. FII's created 13506 longs and unwound 9855 shorts on the index futures

3. On the option front FII  sold 105620 calls and   sold 56928 puts. They also bought 122888 calls and  bought 71128 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 17600 and highest OI for CE is at 18500 followed by 18000. Highest Put writing was seen at 17600 and highest call writing was seen at 17600-18000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 37000 followed by 37500 and highest OI for CE is at 38000 followed by 38500. Highest Put writing was seen at 37500 and highest call writing was seen at 38000 levels. 

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

7. US markets closed in red on Friday

8. The breadth of the market was negative on Friday

9. Nifty opened at 17709 and made an intra day high of 17792 and a low of 17537 before closing at 17629 .The range of Nifty for the day was 255 points.

10. Bank Nifty opened at 37929 and made an intra day high of 38112 and a low of 37396 before closing at 37811 .The range of Nifty for the day was 716 points.

11. US Dollar Index is trading at 93.225

12. Except Bank Nifty and Media most of the sectors closed in red.

13. India VIX increased to 15.24

14. US 10Y yields are at 1.363

15. Nifty futures saw long unwinding

16. Bank Nifty saw short covering

 

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