12th Nov' 2021 (Evening)

12th Nov' 2021 (Evening)  --  | Written on 14th Nov' 2021 at 11.00 PM |

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  • The last day of the week finally saw a strong short covering and as mentioned from last two days, Nifty closed above its 20 DEMA and closed exactly its resistance of 18100. 
  • Bank Nifty though was not as strong as Nifty, it did pick support at and close above its 50DEMA. A classic scenario for a bounce back.
  • Nifty 
    • Nifty made a strong bullish candle on a daily chart with a reasonable lower wick. This pattern is suggestive of a reversal and change of sentiment. Though a follow up is important for confirmation. 
    • Support 
      • First support at 18050
      • Second support at 17950
    • Resistance 
      • First resistance at 18175
      • Second resistance at 18250
    • Nifty closed to its important resistance at 18100 and I expect a gap up opening tomorrow above this level. A protection of this in the early trade tomorrow, could open gates for a journey towards the levels of 18250 and 18350.
  • Bank Nifty
    • Bank Nifty made a Doji kind of candle on the daily chart indicating some short term uncertainty. 
    • Support
      • First support at 38650
      • Second support at 38475
    • Resistance 
      • First resistance at 38850
      • Second resistance at 39200
    • Bank Nifty has been hovering close to its 50DEMA and took support from here. However, a reasonable strength would evolve only above a close of 39300. For a further journey to evolve there are critical levels of 39600 and 40150 to be taken off.
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  • FII bought for 500 Cr after some time, coupled with a DII buying of 800Cr, total institutional buying of 1300Cr gave a strong reason for a reasonable short covering on Friday. 
  • FII also reversed their position on the Futures side. They unwound 9000 Shorts in Index and created 14000 plus longs. They also created longs on stock futures.
  • The FII stance on futures coupled with the interesting levels the Index is at, gives a strong reason to believe that the reversal may sustain and Nifty may see a journey towards 18350 levels. Though, a flight of capital seen in the last days due to higher yields and Dollar Index, is a risk to be watched.
  • US stocks and most of the Global markets were strong on Friday. Tomorrow's global opening and Cues would be important to sustain the strength.
  • The options OI also indicate a support at 18000 for Nifty and 38500 for Bank Nifty. 
  • The economic data released last week was mixed with US jobs data not good, British GDP data also less than expected. US Inflation the most discussed data point was high. Though i mentioned that the investors banking on high economic growth and good earnings may shrug this. However, this would continue to be a shadow and keeps a risk to be watched continuously. 
  • On the domestic front we saw the CPI and production data last week. While CPI was marginally higher than the previous one, production data was not that encouraging. Our markets would react to this on Monday.
  • We would WPI data and auto data this week (tomorrow). Globally we would have Japanese GDP and Chinese production data on Mon, Retail sales data from US on Tue, Euro CPI on Wed, US jobless claims on Thu.
  • Our markets would be closed on Fri due to Guru Nanak Jayanti.
  • Happy trading guys....

1. FII were net buyers for 511 Cr today, while DII were buyers for 851 Cr. A net selling of 1362 Cr from the institutional side.

2. FII's created 14313 longs and unwound 9044 shorts on the index futures

3. On the option front FII  sold 72924 calls and   sold 69004 puts. They also bought 124941 calls and  bought 50521 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 18000 followed by 17900 and highest OI for CE is at 18500 followed by 18300. Highest Put writing was seen at 18000 and highest call writing was seen at 18500 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 38500 followed by 38000 and highest OI for CE is at 38500 followed by 39000. Highest Put writing was seen at 38500 and highest call writing was seen at 38500 levels. 

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

7. US markets closed in green on Friday

8. The breadth of the market was positive

9. Nifty opened at 17977 and made an intra day high of 18123 and a low of 17798 before closing at 17873 .The range of Nifty for the day was 325 points.

10. Bank Nifty opened at 38707 and made an intra day high of 38822 and a low of 38467 before closing at 38733 .The range of Nifty for the day was 355 points.

11. US Dollar Index is trading at 95.112

12. Except media and PSU Bank all  sectors closed in green

13. India VIX eased to 15.2175

14. US 10Y yields are at 1.570

15. Nifty futures saw short covering

16. Bank Nifty futures saw short covering


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