21st Oct' 2021 (Evening)

21st Oct' 2021 (Evening)  -- | Written on 22nd Oct at 5.00 AM  |

  • Indian markets opened gap up but failed to sustain and slipped through the day. Bank Nifty was in general stronger than Nifty and made a strong recovery to close at the day high making strong gains. Nifty on the other hand was could only recover half the points lost.
  • Nifty 
    • Nifty opened gap up and started losing. The selling was seen throughout the day with a swift 130 point recovery in the last hour. I had mentioned this level on Tuesday closing, that below 18260, 18050 would be seen. Nifty made a bearish candle with a slightly longer lower wick, showing some support @ day low.
    • Support
      • First support at 18050.
      • Second support at 17875
    • Resistance
      • First resistance at 18300
      • Second resistance at 18375
    • Nifty seems to be a bit weak, thigh the buying from domestic institutions seem to be supporting at 18050 levels. As mentioned in my previous notes, new range of 18050 to 18600 may confirm today for the index to consolidate in. 
  • Bank Nifty
    • Bank Nifty opened gap up, lost for some time and then made a fantastic recovery driven by short covering in the last hour, closing at an all time high of above 40000. It made a strong bullish candle on the daily chart with a long lower wick.
    • Support 
      • First support at 39800
      • Second support at 39575
    • Resistance 
      • First resistance at 40200
      • Second resistance difficult to predict. Expecting at 40500
    • Bank Nifty was particularly strong yesterday. Results of HDFCBank has encouraged investors to position themselves for KotakBank and ICICIBank. Hope the trend continues. Fresh longs have to be cautious.
  • FII sold heavily yesterday (2818Cr). After selling previous day, DII came in to buy at lower levels of the day. This provides the basis for the new range as mentioned above.
  • FII also unwound longs and created shorts on Index futures, synergizing their positioning in the market. We will have to see their stance today.
  • The options OI indicate support at 18200 for Nifty and 39800 for Bank Nifty. 
  • Dollar Index is in range though the yields have inched higher. With high valuations in equity and some concerns on the expansion of earning further, this could be a concern for further expansion of our indices. Markets may wait for more results to come out.
  • Banking and financials is the space where scope is left and HDFCBank gave good results, so this could be a market leader for some time to come.
  • US data was encouraging yesterday and the markets closed slightly lower from the records being made. A consolidation in US would be seen healthy for us.
  • We may see a green opening today, question would be to see the sustenance.

1. FII were net sellers for 2818 Cr today, while DII were buyers for 428 Cr. A net selling of 2390 Cr from the institutional side.

2. FII's unwound 10456 longs and created 6615 shorts on the index futures

3. Option data irrelevant.

4. For next week expiry, Nifty has the highest OI for PE at 18200 followed by 18000 and highest OI for CE is at 18500 followed by 18200. Highest Put writing was seen at 18200 and highest call writing was seen at 18200 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 39900 followed by 39500 and highest OI for CE is at 40000 followed by 40100. Highest Put writing was seen at 39900 and highest call writing was seen at 40100 levels. 

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

7. US markets trading mixed as of now, with Dow in red and Nasdaq in green

8. The breadth of the market was negative today

9. Nifty opened at 18382 and made an intra day high of 18384 and a low of 18048 before closing at 18178 .The range of Nifty for the day was 336 points.

10. Bank Nifty opened at 39676 and made an intra day high of 40200 and a low of 39428 before closing at 40030 .The range of Nifty for the day was 772 points.

11. US Dollar Index is trading at 93.760

12. Except Banking, Finance and auto all sectors closed in red today

13. India VIX increased to 18.0350

3814. US 10Y yields are at 1.680

15. Nifty futures saw long unwinding

16. Bank Nifty saw short covering


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