11th Oct' 2021 (Evening)

11th Oct' 2021 (Evening)  --  |  Written at 11.00 PM  |

  • The markets opened flat to negative today, with Nifty opening lower and Bank Nifty slightly higher. However, what a day it turned out to be. Nifty breached 18000 intraday and Bank Nifty hit a new all time high.
  • Both the topics I was discussing in yesterday's turned to be true today. Nifty breached 18000 and Bank Nifty made a new all time high.
  • Nifty
    • Nifty opened slightly negative, but quickly started consolidating and made a move upwards. Making a new high it closed slightly lower. It made a bullish candle with a slightly longer upper shadow on the daily chart.
    • Support
      • First support at 17900
      • Second support at 17840
    • Resistance
      • First resistance at 18040
      • Second resistance at 18150
    • Nifty did breakout today from 17950, the level I mentioned yesterday. The key is now to see if it sustains tomorrow.
  • Bank Nifty
    • Bank Nifty proved to be the index of the day today. Opened flat but then made a fantastic gain of 700 points at one point of time. Made a new intraday high of 38495 and then closed strong at 38293 making a strong bullish candle.
    • Support 
      • First support at 38125
      • Second support at 37750
    • Resistance 
      • First resistance at 38500
      • Second resistance at 38800
  • Nifty and Bank Nifty also made a breakout today, lets see the sustainability tomorrow. If the first support level is held as the first hour low tomorrow, we may see new levels being created.
  • FII sold for 300Cr today and DII also sold for 1300Cr today. Inspite of this selling in the cash market, the markets were strong and bullish, power of retail money. This is what i mentioned as a strong sentiment yesterday. The larger question would be to see if this is supported by the institutional investors.
  • FII made bullish bets in the Futures and options side. A reverse position in the two segments indicates a lack of conviction to go long. So watch the opening and first hour trade tomorrow before making fresh positions.
  • The options OI indicate support at 18000 for Nifty and 38000 for Bank Nifty.
  • US is trading flat as of now and Asia closed mixed. So for tomorrow, global cues would be important. The way i see it, i expect some consolidation tomorrow, but then this market is capable of giving surprises.
  • The Dollar Index and US Yields are trading strong, so the risk prevails. Meanwhile, I see these coupled with Energy crisis as a big risk looming on the markets.
  • The trading range for Nifty could be 17600-18050 and for Bank Nifty this range could be 37750-38500. Though i reserve the right to be wrong sometimes. :-)

1. FII were net sellers for 373 Cr today, while DII were sellers for 1303 Cr. A net buying of 1676 Cr from the institutional side.

2. FII's created 10518 longs and unwound 4241 shorts on the index futures

3. On the option front FII  sold 40357 calls and   sold 59093 puts. They also bought 47209 calls and  bought 30593 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17800 followed by 17900 and highest OI for CE is at 18000 followed by 18300. Highest Put writing was seen at 18000 and highest call writing was seen at 18400 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 38000 followed by 37500 and highest OI for CE is at 39000 followed by 38500. Highest Put writing was seen at 38000 and highest call writing was seen at 38400-38500 levels. 

6. Asian markets closed mixed and Europe closed flat to green. 

7. US markets trading flattish as of now.

8. The breadth of the market was positive today

9. Nifty opened at 17867 and made an intra day high of 18041 and a low of 17839 before closing at 17945 .The range of Nifty for the day was 202 points.

10. Bank Nifty opened at 37782 and made an intra day high of 38495 and a low of 37744 before closing at 38293 .The range of Nifty for the day was 751 points.

11. US Dollar Index is trading at 94.312

12. Except IT almost all sectors closed in green

13. India VIX increased to 16.09

14. US 10Y yields are at 1.612



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