16th Nov' 2021 (Evening)

16th Nov' 2021 (Evening)  --  | Written at 10.15 PM |

  • Both Indices opened mildly in green today, however, the selling that started yesterday continued and picked up intensity in the last two hours closing at he lower end of the trading range today.
  • Nifty
    • Nifty opened 20 points higher and then started sliding making a strong bearish candle on the daily chart.
    • Support
      • First support at 17950
      • Second support at 17875
    • Resistance 
      • First resistance at 18050
      • Second resistance at 18125
    • Nifty saw some heavy selling in the last hours and is currently trading close to (slightly lower) its 20DEMA. Todays selling has put pressure and the index is expected to slide lower and pick support from its support levels. A strong support exists at 17800 for Nifty.
  • Bank Nifty
    • Bank Nifty opened almost flat and then was sold off to make a strong bearish candle on a daily chart.
    • Support
      • First support at 38200
      • Second support at 37800
    • Resistance 
      • First resistance at 38400
      • Second resistance at 38725
    • Bank Nifty came under heavy pressure and gave away its support at 38400 today. The levels i see are now 38200 and if this is taken out, we may see a deeper correction till 37800. Technically also Bank Nifty has given away its 50 DEMA and this could be a sign of some sustained weakness.
    • I see from the weekly charts that a reasonable reversal could probably be expected from 37800. Lets see...
  • FII again sold today after two days of buying. They also unwound some longs on Index futures and created shorts. 
  • On the options side though they sold calls heavily and unwound some shorts. I expect a short term dip before the weekly expiry on Thu. The day tomorrow may start with some dip and then may see some short covering towards the last hour.
  • Dollar Index has been continuously inching higher and is now well above 95.5. It has resistance at 97 and i feel that it will probably complete its journey till there. This may keep our markets rangebound and capped for some time. FII capital may remain vulnerable till then.
  • However, good part is that DII have been supporting the markets locally and the economic recovery is strong. In spite of the valuations being high, hopes of higher earnings may keep the markets at these levels.
  • The British earning index and US retails sales data was both positive and keeps the sentiment on earnings high. So hope remain high....
  • The options OI though indicate a support at 17800 for Nifty and 38200 for Bank Nifty.

1. FII were net sellers for 560 Cr today, while DII were buyers for 577 Cr. A net buying of 17 Cr from the institutional side.

2. FII's unwound 4164 longs and created 2066 shorts on the index futures

3. On the option front FII  sold 44168 calls and   unwound 2501 puts. They also bought 7720 calls and  bought 12211 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 18000 followed by 17800 and highest OI for CE is at 18200 followed by 18100. Highest Put writing was seen at 18100 and highest call writing was seen at 17800 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 39000 followed by 38500. Highest Put writing was seen at 38200 and highest call writing was seen at 38500 levels. 

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

7. US markets trading in green as of now

8. The breadth of the market was negative today

9. Nifty opened at 18127 and made an intra day high of 18132 and a low of 17958 before closing at 17999 .The range of Nifty for the day was 174 points.

10. Bank Nifty opened at 38710 and made an intra day high of 38724 and a low of 38211 before closing at 38307 .The range of Nifty for the day was 513 points.

11. US Dollar Index is trading at 95.727

12. Except Auto and IT all sectors closed in red today

13. India VIX eased to 15.1950

14. US 10Y yields are at 1.609

15. Nifty futures saw short buildup

16. Bank Nifty futures saw short buildup


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