7th Oct' 2021 (Evening)

7th Oct' 2021 (Evening)  --  | Written at 11.00 PM  |

  • Markets opened strong on an expiry day today. Both Nifty and Bank Nifty opened gap up, though after opening they remained range bound. 
  • The strong global cues helped keep the market elevated through the day. 
  • Nifty
    • Nifty opened 160 points up and traded in a range of 95 points. After making a move of 40 points, Nifty closed slightly lower.\
    • Nifty made a small bearish candle on the daily chart with a long upper and lower shadow, reflecting some uncertainty.
    • Support
      • First support at 17760
      • Second support at 17640
    • Resistance 
      • First resistance at 17860
      • Second resistance at 17950
    • Nifty seems to have picked up strong momentum today with Auto, Realty and IT stocks making some very strong moves. The range of Nifty seems to be in the 17500-17950.
  • Bank Nifty
    • Support 
      • First support at 37650
      • Second support at 37380
    • Resistance
      • First resistance at 37925
      • Second resistance at 38150
    • On Bank Nifty one has to be extremely careful, as i have been mentioning for some time, it is full of explosive and is waiting to be detonated. Lets see when does this happen. Markets may open gap up tomorrow and a sustenance at that level could fuel it earlier.
  • FII sold again for 1764Cr today, but they unwound a huge number of short in index futures. They also created a good amount of longs in the Stock futures, so overall their stance is encouraging.
  • DII as usual supported and bought for a good 2500Cr. The levels today were protected. This tells me that a sustenance of todays levels could make tomorrow a big day. So watch for the protection of that first hour low.
  • Globally the sentiment was good and the closing today in the Asian, European markets was pretty strong. The US is trading extremely strong as of now. So this could provide that initial boost to us. Keep an eye on the closing today and opening of US futures tomorrow. 
  • The dollar index has inched up slightly and yields are again above 1.5, but we seem to be ignoring this as of now, so enjoy.
  • Important event for tomorrow is the outcome of the RBI monitory policy committee. The markets may watch that. While any wild announcements are not expected, some news may flow in to curb the huge liquidity floating around. This may have some effect on the markets.
  • I am personally entering thin on the markets tomorrow and build my position after the RBI outcome. Some volatility may be expected due to this.
  • Keep a watch on the auto segment. Festive season ahead may generally help the markets. Pharma hasn't moved from long, so some accumulation in that segment may help for the positional traders. 
  • US jobs data yesterday and today has been extremely good. So is supporting the markets. 
  • One caution i would place on the table is that China is closed this week and as it opens, would be important to keep an eye on it. A general slowing in China could drag the global growth.
  • Energy, Inflation continue to be the risks to be watched.

1. FII were net sellers for 1764 Cr today, while DII were buyers for 2528 Cr. A net buying of 764 Cr from the institutional side.

2. FII's unwound 1854 longs and unwound 15242 shorts on the index futures

3. On the option front FII  unwound 169989 calls and   unwound 66024 puts. They also squared 174870 calls and  squared 113770 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17800 followed by 16900 and highest OI for CE is at 17800 followed by 18000. Highest Put writing was seen at 17800 and highest call writing was seen at 17800-18500 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 37000 followed by 37500 and highest OI for CE is at 38000 followed by 39000. Highest Put writing was seen at 37000 and highest call writing was seen at 38000 levels. 

6. Asian markets closed in green and Europe closed in green as well

7. US markets trading in green

8. The breadth of the market was positive today

9. Nifty opened at 17810 and made an intra day high of 17857 and a low of 17763 before closing at 17790 .The range of Nifty for the day was 94 points.

10. Bank Nifty opened at 37894 and made an intra day high of 37923 and a low of 37650 before closing at 37753 .The range of Nifty for the day was 273 points.

11. US Dollar Index is trading at 94.180

12. Markets led by Realty, Auto and IT made strong gains today

13. India VIX reduced to 16.16

14. US 10Y yields are at 1.563

15. Nifty futures saw short covering

16. Bank Nifty saw short covering


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