17th Nov' 2021 (Evening)

17th Nov' 2021 (Evening)  --  | Written at 9.30 PM  |

  • As expected and and mentioned in my notes yesterday, The indices opened gap down. Though immediately after opening their was some buying and the indices rose, but then got sold off, only to rise again after some time, but got sold off again. So there was an attempt twice to take off the day high.
  • Nifty
    • Nifty made a bearish candle on the daily chart with a long upper shadow, indicating resistance and sell off at higher levels.
    • Support 
      • First support at 17840
      • Second support at 17775
    • Resistance
      • First resistance at 18050
      • Second resistance at 18125
    • The short covering I was expecting today, came about earlier than expected and got sold off heavily. After making a double top intraday today, Nifty may not immediately retest the high of 18050 again tomorrow. I expect it to pick some support from the levels mentioned above. Though a breach of these supports may push the index further down to retest the lows of 29th oct.
  • Bank Nifty
    • Bank Nifty day pattern was similar to Nifty. making a bearish candle with a long upper shadow. So bank Nifty may also see some strong resistance from here. In fact i mentioned this yesterday for Bank Nifty.
    • Support
      • First support at 37800
      • Second support at 37400
    • Resistance
      • First resistance at 38300
      • Second resistance at 38725
    • I mentioned yesterday, that Bank Nifty technically has breached the 50DEMA and may definitely test 37800. After that happens the 100 DEMA and the support above are close. I feel 37400-37800 should be a strong demand zone and support for Bank Nifty.
  • FII sold again today in cash, though their position in Index futures was optimistic. Also on the options side they were a bit bullish. So their stance in short term should be to support the market from here.
  • DII did not buy today and let the indices slack. I hope their support coming in now for the reasons below.
  • If Bank Nifty picks support at 37400, it could coincide with a retest of 17650 by Nifty and could help cool our nerves a bit. 
  • Dollar Index is rising continually and is now close to 96. As mentioned here also, I expect a journey till 97, lets see. Till then keep the seat belts fastened.
  • US 10 Y yields are also inching higher. At 1.625, they are at their recent highs and in the hope of rate increases they may also retest their recent highs. 
  • Options OI indicate a support of 17800 and 38000 for Nifty and Bank Nifty respectively for tomorrows expiry.

1. FII were net sellers for 344 Cr today, while DII were sellers for 61 Cr. A net selling of 405 Cr from the institutional side.

2. FII's created 2833 longs and created 1626 shorts on the index futures

3. On the option front FII  sold 18025 calls and   sold 23457 puts. They also bought 12712 calls and  bought 8805 Puts.

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

5. For the next week expiry, Bank Nifty has the highest OI for PE at 38000 followed by 37000 and highest OI for CE is at 39000 followed by 38500. Highest Put writing was seen at 38000 and highest call writing was seen at 38200 levels. 

6. Asian markets closed mixed and Euirope also closed mixed. 

7. US markets trading in red as of now

8. The breadth of the market was negative today

9. Nifty opened at 17939 and made an intra day high of 18022 and a low of 17879 before closing at 17898 .The range of Nifty for the day was 143 points.

10. Bank Nifty opened at 38113 and made an intra day high of 38456 and a low of 37981 before closing at 38041 .The range of Nifty for the day was 475 points.

11. US Dollar Index is trading at 95.995

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

13. India VIX eased to 14.98

14. US 10Y yields are at 1.628

15. Nifty futures saw short buildup

16. Bank Nifty futures saw short buildup


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