3rd Sep' 2021 (Evening)

3rd Sep' 2021 (Evening)  --  | Written on 5th Sep at 7.30 PM |

  • Markets on Friday opened slightly up, got sold off a bit initially but then Nifty picked up good support and spiked off to a new closing high of 17323. While Bank Nifty consolidated and traded in a range of approx 600 points before closing at 36761.
  • Last week performance of important indices
    • Nifty gained 618 points with a trading range of 575 points
    • Bank Nifty gained 1133 points with a trading range of 1417 points
    • Nifty Mid cap gained 1354 points with a trading range of 1250 points
    • Nifty Small Cap gained 406 points with a trading range of 400 points.
  • Indication is of a broader market support. The market breadth is strong again.
  • Nifty 
    • Nifty opened 30 points higher, consolidated and came down to 17212, but it then picked momentum and made a new intraday high of 17340 before closing at 17323 near its day high.
    • Nifty made a bullish candle on a daily chart, indicating a continuing of momentum at the current level. It has to hold above its intraday support of 17212 to continue its upward journey to the next logical target of 17450.
    • Support
      • First support at 17200
      • Second support at 17050
    • Resistance 
      • First resistance at 17330
      • Second resistance at 17400
  • Bank Nifty
    • Bank Nifty opened flat and then made a strong attempt to breach 37200, however it failed and then corrected to settle at 36761.
    • Bank Nifty made a Doji kind of bearish candle o a daily chart, indicating a stiff resistance at 37000.
    • Support
      • First support at Friday low of 36565
      • Strong support zone from 36200-36450.
    • Resistance 
      • First resistance at 35000
      • Second resistance at 37200
    • For Bank Nifty if 37200 is taken out, it may make a strong move towards 37500-37700 Its all time high congestion zone.
  • I would consider Nifty strong above 17200 and Bank Nifty strong above 37200, while a short term weakness only below 17050 on Nifty and 36200 on Bank Nifty. This establishes a trading range of 17050-17300 for Nifty and 36200- 37000 for Bank Nifty.
  • FII on Friday bought for 768Cr and DII bought for 668Cr, a total of 1436Cr of buying. Most of the gains came from Reliance, Auto and Metal stocks. 
  • The FII positions of FII in FnO are bearish and indicate a lack of conviction on further movements. So a hedge is created in FnO segment. 
  • The global markets on Friday were mixed with the Asian Stocks mixed and Europe mostly in red. So keeping an eye on global cues tomorrow would help.
  • The Options OI indicate a support at 17300 for Nifty and a small trading range around 37000 for Bank Nifty.
  • The Dollar Index has eased further to inch closer to 92 now, indicating some more flow of liquidity and this may facilitate riding our indices further.
  • The economic data that was released in the last week was mixed with non farm job data from US extremely poor and Chinese PMI being weak. While Some indices from Europe were good, though slightly lower than the expectations.
  • For the coming week, important events would be to watch German economic sentiment on Tuesday, Japanese GDP on Wednesday, Euro monetary policy statement on Thursday, US initial jobless claims on Thursday and British manufacturing PMI and GDP on Friday. US purchasing price index also comes on Friday.
  • Our markets would be closed on Friday on account of Ganesh Chaturthi.
  • Wish you all a happy trading week ahead.

1. FII were net buyers for 768 Cr today, while DII were buyers for 668 Cr. A net buying of 1436 Cr from the institutional side.

2. FII's unwound 70 longs and created 8047 shorts on the index futures

3. On the option front FII  sold 79435 calls and   sold 56844 puts. They also bought 61475 calls and  bought 58850 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17200 followed by 17000 and highest OI for CE is at 17300 followed by 17500. Highest Put writing was seen at 17300 and highest call writing was seen at 17300-17900 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 36000 followed by 36500 and highest OI for CE is at 37000 followed by 37500. Highest Put writing was seen at 37000 and highest call writing was seen at 37000 levels. 

6. Asian markets closed mixed on Friday and Europe closed in red

7. US closed flat on Friday with Dow mildly in red and Nasdaq mildly in green

8. The breadth of the market was positive on Friday

9. Nifty opened at 17262 and made an intra day high of 17340 and a low of 17212 before closing at 17323 .The range of Nifty for the day was 128 points.

10. Bank Nifty opened at 36883 and made an intra day high of 37140 and a low of 36563 before closing at 36761 .The range of Nifty for the day was 577 points.

11. US Dollar Index is trading at 92.132

12. Reliance, Auto and Metals led the gains on Nifty on Friday

13. India VIX increased to 14.54

14. US 10Y yields are at 1.326

15. Nifty futures saw long buildup

16. Bank Nifty saw short buildup


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