9th Sep' 2021 (Evening)

9th Sep' 2021 (Evening)  --  | Written on 12th Sep at 3.00 PM |

  • The indices on Thursday opened mildly in red. While Nifty had a bullish bias through out the day, Bank Nifty had a relatively negative bias.
  • Nifty 
    • Nifty opened 58 points lower and then was strong from there for the whole day. It finally closed at 17369, 16 point higher than the previous close.
    • Nifty made a bullish inside candle on the daily chart. It is around 26 point from its intraday all time high of 17383.
    • Support
      • First support at 17250
      • Second support at 17150
    • Resistance
      • First resistance at 17380
      • Second resistance at 17430
  • Bank Nifty
    • Bank Nifty opened 43 points lower at 36725, made some gains till 36850 and then sold off till 36600, made a small rebound till 36750 and then again got sold off till 36570 befors finally closing 80 point lower at 36683.
    • Making a Doji kind of Bearish candle, Bank Nifty indicated a lack of direction.
    • Support 
      • First support at 36450
      • Second support at 36150
    • Resistance 
      • First resistance at 36850
      • Second resistance at 37150
    • As mentioned in the previous note also, Bank Nifty could be a key index. In my previous note, I mentioned that, due to expiry Bank Nifty may remain under pressure on Thursday. I would now keep an eye on it and watch if it takes down 37150 this time. Fingers crossed :-)
  • FII on Thursday bought for 400Cr in the cash market. Though this was hedged strongly in the futures side. I believe this hedging was created due to a long week end in India. Now if the shorts do not get a follow through on Monday, we may see a strong short covering as well.
  • The morning hour trade tomorrow would be important. Watch out for the global cues coming from US and Asian Markets tomorrow morning.
  • The US markets were weak on Thursday and Friday. So a weak handover could lead to some weakness in our indices initially. As mentioned watch for the opening trade tomorrow.
  • Just for reference, when we closed on Thursday, Nifty was 17369 and Dow Future was 34930 and on Friday Dow Future Closed at 34640, which is 290 point lower. We will thus open to this lag on the lower side.
  • The options OI indicate a support at 17200 and resistance at 17500 for Nifty, while a support at 36000 and resistance at 36700 for Bank Nifty. I expect our indices to open closer the lower limit of this range and then consolidate. As mentioned above, watch for the Global Cues from US and Asian markets to gauge the mood of the market.
  • The Dollar Index and the US yields are in a reasonable level and do not a pose any risk as of now.
  • The Economic indicators released last week were mixed with excellent US job data, good PPI from US and a Strong Japanese GDP, but a weak economic sentiment from Germany.
  • Watch for Core CPI from US on Tuesday, Chinese Industrial production and British CPI on Wednesday, Jobless data and retail sales from US on Thursday, CPI from Europe on Friday.
  • I maintain that Nifty is weak only below 17050 and Bank Nifty below 36150. All Dips towards these levels are good opportunities to buy. The trading range that evolves is for Nifty 17250-17430 and Bank Nifty 36150-36850. Bank Nifty strong above 37150.

1. FII were net buyers for 423 Cr today, while DII were buyers for 704 Cr. A net buying of 1127 Cr from the institutional side.

2. FII's unwound 9404 longs and created 7683 shorts on the index futures

3. Being weekly expiry, the options data is not so relevant

4. For next week expiry, Nifty has the highest OI for PE at 17300 followed by 17200 and highest OI for CE is at 17400 followed by 17500. Highest Put writing was seen at 17000-17300 and highest call writing was seen at 17400-17800 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 36000 and highest call writing was seen at 36700 levels. 

6. Asian markets closed mostly mixed on Thursday and mostly in green on Friday. European Markets closed mixed on Thursday and Friday

7. US markets closed in red on both Thursday and Friday

8. The breadth of the market was positive today

9. Nifty opened at 17312 and made an intra day high of 17379 and a low of 17302 before closing at 17369 .The range of Nifty for the day was 77 points.

10. Bank Nifty opened at 36725 and made an intra day high of 36857 and a low of 36566 before closing at 36683 .The range of Nifty for the day was 291 points.

11. US Dollar Index is trading at 92.645

12. Metals, FMCG and Reliance led the gains on Thursday

13. India VIX reduced to 13.94

14. US 10Y yields are at 1.343

15. Nifty futures saw long unwinding

16. Bank Nifty saw short buildup


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