8th Sep' (Evening)

8th Sep' (Evening) -- |Written on 9th Sep at 5.20 AM |

  • Indian indices opened mildly in green, while BankNifty was stronger than Nifty when we started, Nifty also made a comeback from 17250 and caught up with BankNifty to close strong.
  • Nifty
    • Nifty opened mildly in green, got sold off and went south for almost 100 point plus up to 17250, however picked resistance at 17250 and made a strong rebound to close at opening levels.
    • While the candle was mildly bearish, Nifty made a hammer pattern on the daily chart indicating support at lower levels.
    • Support 
      • First support at 17250
      • Second support at 17150
    • Resistance 
      • First resistance at 17380
      • Second Resistance at 17440
    • Fresh longs are not recommended at these levels. Compulsive traders can make fresh longs, if Nifty crosses 17440. Keep and eye Bank Nifty though.
  • Bank Nifty
    • Bank Nifty opened flat, got sold off a bit in opening hrs, but then picked support from 36400 and made a steep rise to 36800, corrected to 36500 again, but then was bought again to take out the previous day high and close near day high at 36768.
    • It provided a good intraday swing of 200-300 points, typical of Bank Nifty.
    • Bank Nifty made a strong bullish candle and show good momentum. A strong swing support is now established at 36200.
    • Support 
      • First support at 36525
      • Second support at 36150
    • Resistance 
      • First resistance at 36850
      • Second resistance at 37150
    • Bank Nifty seems to be strong and there is a strong chance the first resistance may be taken out. Important to watch is if the second resistance at 37150 is taken down.
    • If 37150 is taken down, (Due to weekly expiry, seems less probable to happen today itself), we may see a sharp rise towards All time high zone of 37500-37700. This movement could trigger a much awaited contribution of Bank Nifty to Nifty rise. I have been mentioning this for some time now.
  • FII again sold yesterday in cash and DII were neutral. The stance of FII in the FnO segment is mildly bullish. Expected to play a small range through options. 
  • Expect to see the expiry today for Nifty between 17300-17400 and Bank Nifty between 36500-37000. So expiry players could watch these levels for their game.
  • Dollar Index at 92.6 and US Yields at 1.35 continue to be no risk as of now.
  • Japanese GDP data was strong yesterday. Watch out for European monetary policy statement today. Market may pick some cues on tapering from the European side.
  • After a flattish close from US yesterday, Asian markets have opened half a percent in red, so some pressure seen, US futures also mildly in red.
  • I expect Bank Nifty may turn out to be a key Index, watch closely.

1. FII were net sellers for 802 Cr today, while DII were buyers for 0.6 Cr. A net selling of 801.4 Cr from the institutional side.

2. FII's created 794 longs and created 430 shorts on the index futures

3. On the option front FII  unwound 25542 calls and   sold 19749 puts. They also unwound 77681 calls and  unwound 30049 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 17400 followed by 17500. Highest Put writing was seen at 17300 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 36800. Highest Put writing was seen at 36700 and highest call writing was seen at 36800 levels. 

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

7. US markets closed marginally in red.

8. The breadth of the market was neutral today

9. Nifty opened at 17375 and made an intra day high of 17383 and a low of 17254 before closing at 17353 .The range of Nifty for the day was 129 points.

10. Bank Nifty opened at 36519 and made an intra day high of 36855 and a low of 36393 before closing at 36768 .The range of Nifty for the day was 462 points.

11. US Dollar Index is trading at 92.632

12. Banking, Energy and Metals laed the market today

13. India VIX reduced to 14.41

14. US 10Y yields are at 1.353

15. Nifty futures saw long unwinding

16. Bank Nifty saw short covering


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