4th Oct' 2021 (Evening)

4th Oct' 2021 (Evening)  -- | Written at 11.00 PM  |

  • As expected, markets opened gap up today and continued to consolidate for the day. Both the indices were capped on the up side, however, continued holding and showed strong resilience.
  • Nifty
    • As mentioned yesterday,  the first resistance for Nifty was taken off in the opening itself. After opening around 80 point up, Nifty kept on consolidating and closed around 160 points up.
    • Nifty made a bullish candle on the daily chart with a long lower shadow, indicating buying coming in at lower levels.
    • Support 
      • First support at 17650
      • Second support at 17585
    • Resistance 
      • First resistance at 17780
      • Second resistance at 17850
    • Though the second resistance mentioned yesterday was breached today, As mentioned yesterday, Nifty respected the upper limit mentioned yesterday of 17750. The trading range of nifty remains same, ie 17450-17780 till it is breached on either side. 
  • Bank Nifty
    • Bank Nifty opened gap up as well and continued to consolidate. Opening 170 points up, it consolidated and closed 350 points higher at 37579.
    • Bank Nifty also made a bullish candle on a daily chart with long upper and lower shadow, indicating a range bound movement.
    • Support 
      • First support at 37475
      • Second support at 37050
    • Resistance 
      • First resistance at 37675
      • Second resistance at 37900
    • Bank Nifty is showing a range bound movement as of now. The range could be like, 36900-37900 as mentioned yesterday as well.
  • FII bought again today for 860Cr and DII also bought for 228Cr. So a good consensus amongst the institutions. FII though sold on Index futures and bought calls, probably to hedge the index positions.
  • Globally the sentiment is still risk off. European markets closed in red and US is trading in red as of now. Especially the tech stocks are beaten heavily with Nasdaq down almost 2.5%.
  • Dow has lost almost 1100 points from the last swing high. US is still buzzing with all sorts of discussions on Inflation, Energy etc.
  • While the Dollar Index has eased and the US yields are also down, our markets are probably waiting for the anxiety in mother markets to be over. Lets wait and see where does US close today. This will keep a lid on our markets as well.
  • The growth seems to be getting a consensus with Inflation being seen as more supply driven, China is being seen as a concern towards global growth. 
  • Added to it a new geo political factor is now coming up, with China threatening Taiwan. Hope this does not get serious, keep an eye.
  • As mentioned, buy on dips is intact, try buying on dips closer to the support levels i mentioned. However, keep your risk under control.

1. FII were net buyers for 860 Cr today, while DII were buyers for 228 Cr. A net buying of 1088 Cr from the institutional side.

2. FII's unwound 11784 longs and unwound 3194 shorts on the index futures

3. On the option front FII  sold 32448 calls and   sold 16074 puts. They also bought 84001 calls and  bought 30688 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17600 followed by 17500 and highest OI for CE is at 18000 followed by 17700. Highest Put writing was seen at 17700 and highest call writing was seen at 17700-18100 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 37500 followed by 36500 and highest OI for CE is at 38000 followed by 37500. Highest Put writing was seen at 37500 and highest call writing was seen at 37600 levels. 

6. Asian markets closed mixed and Europe closed in red

7. US markets trading in red

8. The breadth of the market was positive today

9. Nifty opened at 17615 and made an intra day high of 17750 and a low of 17581 before closing at 17691 .The range of Nifty for the day was 169 points.

10. Bank Nifty opened at 37392 and made an intra day high of 37670 and a low of 37355 before closing at 37579 .The range of Nifty for the day was 315 points.

11. US Dollar Index is trading at 93.778

12. led by metals, almostr all sectors closed in green today

13. India VIX reduced to 17.21

14. US 10Y yields are at 1.479

15. Nifty futures saw long buildup

16. Bank Nifty saw short covering


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