6th Sep' 2021 (Evening)

6th Sep' 2021 (Evening)  -- | Written at 11.00 PM |

  • The indices opened higher and then were sold off to slide a bit from their day highs. While Nifty picked up support and held its ground above the previous close, Bank Nifty closed slightly lower.
  • Nifty
    • Nifty opened approx 75 points higher, made small gains and an intraday high of 17429 and then an intraday low of 17345 (still higher than previous close) and then consolidate to close at 17377.
    • Nifty made a Doji kind of Bearish candle on the daily chart, indicating a bit of uncertainty ahead.
    • Support
      • First support at 17225
      • Second support at 17050
    • Resistance 
      • First resistance at 17428
      • Second resistance at 17500
  • Bank Nifty
    • BankNifty opened slightly higher, got sold off, picked support at 36550 and then closed around its low at 36592.
    • Bank Nifty made a bearish candle on the daily chart. On an hourly chart it shows a lower high formation consecutively with support around 36500.
    • Support
      • First support at 36550
      • Second support at 36200
    • Resistance 
      • First Resistance at 36750
      • Second Resistance at 36925
  • FII sold for 589Cr today and the DII bought for 547 Cr, kind of negating each other today. Net selling of 42 Cr on the index.
  • Though the FII created a small number of long positions today, they created a hedge on the options side by selling more calls than puts. Almost 5 calls for every put sold.
  • I would see their stance not very bullish as of now. We may see some short term exhaustion on Nifty from here as it approaches 17500 now. Some consolidation may be expected here. However, the index has to stay above 17200 for sustenance of strength.
  • The slight breather created may be also due to the fact that US markets are closed today. lets watch the action tomorrow.
  • US yields and Dollar index haven't changed much, so continue to be in our favor.
  • Global Cues tomorrow morning would be important to watch. Keep an eye on US futures.
  • The options OI indicate hovering around 17400 for Nifty, so some consolidation may happen there. Bank Nifty we see support at 36500.
  • For upward journey of Nifty to continue, Bank Nifty has to support from here. So watch it for Bank Nifty. A breakdown towards 36200, may halt the movement of nifty as well. Well, it would surprise me if it does go towards 36200. 
  • As i have been saying, any weakness though is only after 17050 and 36200 is breached on Nifty and Bank Nifty.

1. FII were net sellers for 589 Cr today, while DII were buyers for 547 Cr. A net selling of 42 Cr from the institutional side.

2. FII's created 3784 longs and unwound 202 shorts on the index futures

3. On the option front FII  sold 72115 calls and   sold 15579 puts. They also bought 88282 calls and  bought 48177 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17300 followed by 17000 and highest OI for CE is at 17500 followed by 17400. Highest Put writing was seen at 17400 and highest call writing was seen at 17400 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 36500 levels. 

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

7. US markets are closed on account of labor day today, though the US futures are trading in green since morning.

8. The breadth of the market was positive on Friday

9. Nifty opened at 17399 and made an intra day high of 17429 and a low of 17345 before closing at 17377 .The range of Nifty for the day was 84 points.

10. Bank Nifty opened at 36878 and made an intra day high of 36923 and a low of 36554 before closing at 36592 .The range of Nifty for the day was 369 points.

11. US Dollar Index is trading at 92.215

12. Banking and FMCG were flattish to red today, other indices were in green

13. India VIX increased to 15.11

14. US 10Y yields are at 1.326

15. Nifty futures saw long buildup

16. Bank Nifty saw short buildup


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