26th Oct' 2021 (Evening)

26th Oct' 2021 (Evening) -- | Written at 05.00 AM on 27th Oct |

  • After a stellar run yesterday, Bank Nifty took a breather and shared the run way with Nifty. Driven by some short covering today, Nifty closed 143 points higher, While Bank Nifty closed mildly in green.
  • Nifty
    • Nifty made a bullish candle on the daily chart with small upper and lower shadows. Indicates some support buildup after yesterdays candle. 
    • Support
      •  First support at 18200 
      • Second support at 18100
    • Resistance
      • First resistance at 18310
      • Second resistance at 18375
    • Nifty has to close above  its first resistance at 18300 to build further on it and start moving towards 18400-18500 levels again, while a slip below 18100 could again lead it to 17900 levels.
  • Bank Nifty
    • Support
      • First support at 41100
      • Second support at 40800
    • Resistance 
      • First resistance at 41400
      • Second resistance at 41750
    • Bank Nifty is consolidating inside the yesterday bullish candle. Look for a breakout from this candle for a quantum move. After the stellar move, some more consolidation is likely.
  • FII sold for 2368Cr in cash and this takes their selling to 12500cr in the last 5 trading sessions. They also sold Index futures in the last five sessions. Though they are still net long on index futures.
  • DII on the other hand have been buying in cash and bought for 4000Cr in the last three sessions. This has created a trading range of 18050 to 18500 on Nifty, while Bank Nifty has been particularly strong. 
  • I have been writing about Bank Nifty for some time now. The break out from 38400 levels has given Bank Nifty a move of 3000 points. I expect this index to consolidate a these levels. The range evolving could be 40500 to 41750 here.
  • The dollar Index and US Yields are stable at 93.9 and 1.62 levels. So no surprises there.
  • Yesterday US markets closed flat and the US futures are trading in green this morning. Though the levels we closed at 3.30 yesterday are more or less same.
  • The options OI indicate support at 18000 for Nifty and 41000 for Bank Nifty. while the call writers are sitting at 18500 for Nifty and 42000 for Bank Nifty.
  • I expect a flat opening today.

1. FII were net sellers for 2368 Cr today, while DII were buyers for 1385 Cr. A net selling of 983 Cr from the institutional side.

2. FII's unwound 597 longs and created 2993 shorts on the index futures

3. On the option front FII  unwound 14689 calls and   sold 30224 puts. They also unwound long 5489 calls and  bought 23012 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 18000 followed by 18200 and highest OI for CE is at 18500 followed by 18300. Highest Put writing was seen at 18200 and highest call writing was seen at 18600 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 41000 followed by 40000 and highest OI for CE is at 42000 followed by 41500. Highest Put writing was seen at 41000 and highest call writing was seen at 41500 levels. 

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

7. US markets trading flattish as of now.NIfty

8. The breadth of the market was positive today

9. Nifty opened at 18154 and made an intra day high of 18310 and a low of 18099 before closing at 18268 .The range of Nifty for the day was 211 points.

10. Bank Nifty opened at 41057 and made an intra day high of 41367 and a low of 40829 before closing at 41238 .The range of Nifty for the day was 538 points.

11. US Dollar Index is trading at 93.960

12. All sectors closed in green today

13. India VIX eased to 16.75

3814. US 10Y yields are at 1.619

15. Nifty futures saw long unwinding

16. Bank Nifty saw short covering


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