5th Oct' 2021 (Evening)

5th Oct' 2021 (Evening)  -- |  Written at 11.00 PM  |

  • Markets opened marginally lower today and then consolidated to shoot up later and close high and strong. 
  • Nifty 
    • Nifty opened 30 points lower, consolidated for an hour, and then got support to shoot and close at day high.
    • Nifty created a strong bullish candle on the daily chart. After the momentum picked on Friday and Saturday, this momentum is expected to continue.
    • Support
      • First support at 17750
      • Second support at 17675
    • Resistance 
      • First resistance at 17880
      • Second resistance at 17950
    • Nifty is back in a strong zone now. It has to now maintain above 17750 to keep building the momentum towards 18000 again. The next level are mentioned above.
  • Bank Nifty
    • Bank Nifty consolidated a bit longer today and took off more towards the later half, but closed strong
    • Bank Nifty also made a strong bullish candle on the daily chart and after two days of bullish candles, indicates some momentum ahead.
    • Support
      • First support at 37600
      • Second support at 37375
    • Resistance 
      • First resistance at 37880
      • Second resistance at 38150
    • Bank Nifty has been making range bound moves for some time now and i have been mentioning that it is a beast, waiting to unleash. The result season ahead could be a reason for this to happen. lets see.
  • FII sold today in the cash market and also unwound a substantial longs in index futures. Their volumes on the options side was also less. This could be a small attempt to pull out some capital. Probably because of some concerns on the inflation front at home.
  • DII though as i mentioned earlier came to rescue and supported the markets at lower levels. I mentioned earlier as well, at least as of now, we can trust in domestic liquidity.
  • Dollar Index continues to be below 94, though the US yields are back above 1.5 now. So a mixed feeling
  • Though US is trading high as of now and Europe too closed in green, Domestic liquidity is strong, I will continue to be cautious and keep the risk low as of now. A pull back tomorrow is definitely possible, however the sustainability of it would be questionable. So markets may remain capped.
  • The options OI indicate call writers at 18000 and 38000. so these remain critical resistance zones.
  • The earning season starts now and Banks show good numbers. Lets see if this provides the necessary ammunition to banks.
  • Play the range and buy the dips, it works..... 

1. FII were net sellers for 1915 Cr today, while DII were buyers for 1868 Cr. A net selling of 47 Cr from the institutional side.

2. FII's unwound 7528 longs and unwound 1163 shorts on the index futures

3. On the option front FII  unwound 1388 calls and   sold 5785 puts. They also bought 10977 calls and  bought 5723 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17600 followed by 17700 and highest OI for CE is at 18000 followed by 17700. Highest Put writing was seen at 17800 and highest call writing was seen at 17900-18000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 37500 followed by 37000 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 37800-38000 levels. 

6. Asian markets closed mixed and Europe closed in green

7. US markets trading in green

8. The breadth of the market was positive today

9. Nifty opened at 17661 and made an intra day high of 17833 and a low of 17640 before closing at 17822 .The range of Nifty for the day was 193 points.

10. Bank Nifty opened at 37499 and made an intra day high of 37786 and a low of 37364 before closing at 37741 .The range of Nifty for the day was 422 points.

11. US Dollar Index is trading at 93.933

12. markets led by Energy and IT stocks and laggards were realty and pharma.

13. India VIX reduced to 16.4

14. US 10Y yields are at 1.522

15. Nifty futures saw short covering

16. Bank Nifty saw long buildup

 

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