10th Nov' 2021 (Evening)

10th Nov' 2021 (Evening)  -- | Written at 11.00 PM  |

  • Markets opened today on a pretty much expected note. Global cues were not very strong and accordingly our indices opened weak and continued the slide. 
  • As mentioned yesterday, that Nifty is stronger than Bank Nifty, it picked support and recovered losses to make a bullish candle, Bank Nifty closed at the low end of the market today.
  • Nifty
    • Nifty made a bullish candle with reasonable upper and lower wick. While it closed below yesterdays close, it consolidated well and it is still within the Monday trading range. 
    • Support
      • First support at 17940
      • Second support at 17850
    • Resistance
      • First resistance at 18100
      • Second resistance at 18200
    • Nifty peaked when Reliance, Nifty IT and Bank Nifty all were at the peak. All these major indices are in consolidation as of now. A broader consensus is required for Nifty to attemt the Highs it made recently. Today, Nifty picked up support driven from Reliance, HDFC, Auto and some pharma stocks today. A broader strength is required to lift the index. 
  • Bank Nifty
    • Bank Nifty continues to be the weaker index, with major stocks HDFCBank, ICICIBank, SBI and Kotak all being weak as of now. Seems the FII sell has a major component from the banks.
    • Support
      • First support at 38900
      • Second support at 38500
    • Resistance 
      • First resistance at 39200
      • Second resistance at 39550
    • Bank Nifty has to clear multiple resistance upto 40000, As mentioned yesterday, for a reasonable strength to develop a close above 40000 is necessary.
  • FII sold for 469Cr in cash today, they also unwound longs in index futures and created some fresh shorts. Their stance on the options side is also bearish. I suspect most of this is on Bank Nifty.
  • US Inflation data was very high. A number of 0.6 MoM against an expectation of 0.4 was taken as negative initially. While the equity market in US has not reacted sharply, a rise in Dollar Index and US 10Y yields as see. With Dollar Index climbing above 94.5 and yields above 1.5 again. Both of these are not alarming as of now. Any knee jerk reaction was not seen in US today.
  • Investors seem to be banking on expectations of higher earnings along with an increase in Inflation. Please go through my thread on Inflation for a better understanding on the High Inflation scenario.
  • Options OI indicate a support on 17800 for Nifty and 39000 for Bank Nifty.
  • Huge amount of money is also flowing into the primary market. With PayTM and Nycaa recently, some funds could have been finding way into them. 

1. FII were net sellers for 469 Cr today, while DII were buyers for 766 Cr. A net buying of 297 Cr from the institutional side.

2. FII's unwound 1385 longs and created 4433 shorts on the index futures

3. On the option front FII  sold 26653 calls and   sold 29032 puts. They also bought 10257 calls and  bought 43363 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17900 followed by 17800 and highest OI for CE is at 18200 followed by 18100. Highest Put writing was seen at 17800 and highest call writing was seen at 18000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 39000 followed by 38500 and highest OI for CE is at 39500 followed by 40000. Highest Put writing was seen at 39000 and highest call writing was seen at 39000 levels. 

6. Asian markets closed mixed and Europe closed in green

7. US markets trading marginally in red as of now.

8. The breadth of the market was negative

9. Nifty opened at 17973 and made an intra day high of 18061 and a low of 17915 before closing at 18017 .The range of Nifty for the day was 146 points.

10. Bank Nifty opened at 39206 and made an intra day high of 39220 and a low of 38873 before closing at 39023 .The range of Nifty for the day was 347 points.

11. US Dollar Index is trading at 94.597

12. Reliance, Auto and Pharma gained today to save nifty, rest all sectors closed in red.

13. India VIX increased to 16.3050

14. US 10Y yields are at 1.527

15. Nifty futures saw short buildup

16. Bank Nifty futures saw short buildup


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