1st Sep' 2021 (Evening)

1st Sep' 2021 (Evening)  --  | Written at 11.00 PM |

  • After a stellar run over last two days, the indices took time to breath. Though Bank Nifty as expected and mentioned in my notes yesterday, made an attempt to breach the 37250 today. Faced stiff resistance at 37000 and settled. 
  • Nifty 
    • Nifty opened higher, made some small move and then saw profit booking. Was logical after this stellar move of 400 plus points in two days.
    • It made a bearish candle on a daily chart, it however sits above its short term supports and is strong. I see it strong till it is above its support at 17050 and it closed above this.
    • Support
      • First support at 17050
      • Second support at 16900
    • Resistance 
      • First resistance at 17150
      • Second resistance at 17250
  • Bank Nifty 
    • Bank Nifty made an attempt to breach the resistance at 37250. As mentioned yesterday in my notes, once 36550 is taken off, it would make a sharp move towards 37250.
    • However, it faced resistance earlier at 37000 itself and saw some profit booking. It is still strong though and is above its support at 36550. So another move towards 37000 can be expected.
    • Support 
      • First support at 36550
      • Second support at 36230
    • Resistance 
      • First resistance at 36800
      • Second resistance at 37250
  • FII bought for apprx 600Cr in the cash market and DII sold for apprx 1280 Cr in the cash market. 
  • While FII did buy in the cash market, they unwound longs and created shorts in the Futures. While i would not see this as a bearish stance, it more is a sign of some profit booking and taking away some cash.
  • I would see Nifty strong above 17050 and Bank Nifty strong above 36550. Below this we may see a move as per support levels mentioned above.
  • Options OI also indicate a support at 17000 and resistance at 17300 for Nifty and a support at 36500 and a resistance at 37000 for Bank Nifty. Watch for a breach on the either side for a further movement.
  • Dollar Index has eased a bit and 10 Y yields are stable. Good for us.
  • The Auto numbers released today are a bit negative and raise concerns on the short term future of the auto market. Major concerns being the semi conductor shortages. 
  • Covid cases are on a rise, though as mentioned yesterday, nobody on the street, bothers as of now.
  • The German Mfg PMI and US non farm jobs change were negative today. While the Mfg growth in US is positive. So kind of mixed.
  • The sentiment in the European and US markets is muted today, except for the technology stocks on Nasdaq. 
  • I am thinking of adding some stocks for a daily analysis as for Nifty and bank Nifty above. Suggestions are welcome. 

1. FII were net buyers for 666 Cr today, while DII were buyers for 1287 Cr. A net selling of 621 Cr from the institutional side.

2. FII's unwound 6936 longs and created 3011 shorts on the index futures

3. On the option front FII  sold 66232 calls and   unwound 42682 puts. They also bought 18099 calls and  unwound 64278 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 17200 followed by 17300. Highest Put writing was seen at 17200 and highest call writing was seen at 17200 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 36500 followed by 36000 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 36700-37100 levels. 

6. Asian markets closed mixed today and Europe closed flat to green

7. US Dow is trading flat and Nasdaq is trading green.

8. The breadth of the market was neutral today

9. Nifty opened at 17185 and made an intra day high of 17225 and a low of 17055 before closing at 17076 .The range of Nifty for the day was 170 points.

10. Bank Nifty opened at 36591 and made an intra day high of 36997 and a low of 36487 before closing at 36574 .The range of Nifty for the day was 510 points.

11. US Dollar Index is trading at 92.433

12. Except IT and Metals, almost all sectors closed in green

13. India VIX reduced to 14.19

14. US 10Y yields are at 1.309

15. Nifty futures saw long unwinding

16. Bank Nifty saw long buildup


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