10th Oct' 2021 (Evening)

10th Oct' 2021 (Evening)  --  | Written on 10th Oct' 2021 at 8.00 PM  |

  • The indices opened gap up on Friday. While Nifty consolidated at those levels and traded in a range, Bank Nifty on the other side, raised but then gave up the gains and could not recover from the lows. While both indices closed higher than the previous day, Nifty made a bullish candle and Bank Nifty made a bearish candle on the daily chart.
  • Nifty
    • Nifty made a bullish candle with reasonable upper and lower shadows, indicating consolidation and range bound action on Friday.
    • Support 
      • First support at 17840
      • Second support at 17765
    • Resistance 
      • First resistance at 17950
      • Second resistance at 18150
    • Nifty is strong and with the festive season ahead, coupled with a strong Q2 delivered by many companies, there is a possibility of a breakout above 17950 and a close above this level could open gates towards 18200. As of now a strong base at 17460 stands and a range of 17460-17950 stands for Nifty.
  • Bank Nifty
    • Bank Nifty could not sustain the levels opened on Friday.  It ended up making a bearish candle with a slightly longer upper shadow than the lower shadow. 
    • Support 
      • First support at 37675
      • Second support at 37400
    • Resistance 
      • First resistance at 38100
      • Second resistance at 38400
    • While I have been mentioning that Bank Nifty could make a wild move anytime, it has been consistently facing stiff resistance at 38150. While on one side it gets sharply rejected from 38100 levels, it picks up support soon and has been witnessing higher lows consistently. So keep my stance bullish on Bank Nifty as well.
  • FII sold on Friday in the cash market, though for a small amount. DII also sold for a small amount. FII bought for a small amount in Index futures on Friday. A bit of option buying indicates some volatility expected but generally a cautious wait to probably watch the action back home in the bond market.
  • Domestic liquidity has been extremely strong and all dips seem to be getting bought. I keep my faith in it, citing the strong sentiment and good performance by banks, jewelry, realty and IT companies so far. Valuations are high, but seems high earning expectations are being generally delivered. Keep watching.
  •  The Dollar Index is back above 94 and US 10Y yields are above 1.6 now. So the foreign capital flight may continue, but seems no body cares locally. Keep enjoying the bull run, but be cautious.
  • The options OI indicate support at 17800 for Nifty and 37500 for Bank Nifty.
  • Non Farm pay rolls data from US disappointed on Friday, else it would have been a week of fantastic economic data coming in globally.
  • RBI MPC outcome on Friday was encouraging. While on the face of it nothing changed and assurance from RBI was to maintain an accommodative stance for "As long as necessary" boosted confidence. Although studying between the lines is even more positive.
  • Watch for these events this week :
    • Tue - British Earnings Index, 
    • Wed - British GDP, US Core CPI, FMC Minute
    • Thu - US Initial Jobless claims, US PPI
    • Fri - Retail sales data from US
  • Wish you a happy trading week ahead.....

1. FII were net sellers for 64 Cr today, while DII were sellers for 168 Cr. A net buying of 232 Cr from the institutional side.

2. FII's unwound 89 longs and unwound 204 shorts on the index futures

3. On the option front FII  sold 46815 calls and   sold 51733 puts. They also bought 57384 calls and  bought 49871 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17800 followed by 17700 and highest OI for CE is at 18000 followed by 18300. Highest Put writing was seen at 17900 and highest call writing was seen at 18000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 37000 followed by 37500 and highest OI for CE is at 38000 followed by 39000. Highest Put writing was seen at 37000-38000 and highest call writing was seen at 38000 levels. 

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

7. US markets closed flat to red. With Dow closing almost flattish and Nasdaq closed inred

8. The breadth of the market was neutral today

9. Nifty opened at 17886 and made an intra day high of 17941 and a low of 17840 before closing at 17895 .The range of Nifty for the day was 101 points.

10. Bank Nifty opened at 37906 and made an intra day high of 38105 and a low of 37674 before closing at 37775 .The range of Nifty for the day was 431 points.

11. US Dollar Index is trading at 94.115

12. Except Realty and Pharma, most of the indices closed in green

13. India VIX reduced to 15.65

14. US 10Y yields are at 1.612

15. Nifty futures saw long buildup

16. Bank Nifty saw long buildup


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