1st Nov' 2021 (Evening)

1st Nov' 2021 (Evening) -- | Written on 2nd Nov' 2021 at 8.00 AM |

  • As mentioned in my weekend notes, post the sharp correction on Thursday and Friday, markets yesterday got a support. Both Nifty and Bank Nifty recovered and closed strong.
  • Nifty
    • Nifty after opening gap up, consolidated a bit and then made a strong move to close strong, making a bullish candle on the daily chart.
    • Support
      • First support at 17825
      • Second support at 17700
    • Resistance
      • First resistance at 18025
      • Second resistance at 18100
    • Nifty has come closer to its 20DEMA of 17975, a close above this level could then open gates for 18200 levels. Lets see...
  • Bank Nifty 
    • Bank Nifty daily pattern was more or less similar, opened strong, consolidated and then gave a breakout above 39750 (second resistance mentioned in my notes).
    • Support
      • First support at 39500
      • Second support at 39150
    • Resistance
      • First resistance at 39975
      • Second resistance at 40350
    • Bank Nifty has now breached the 20DEMA and is trading above that, this could be a good level for it to build its base. However, it is still trading within its previous week candle on a weekly chart. For a broader direction, a breach of this candle has to be watched.
  • FII again sold yesterday, although the magnitude was miniscule, the DII also bought for a smaller amount. So the institutional direction is still not clear. 
  • FII however bought some futures on index and also sold some puts. So a support definitely has established, the trading range is evolving now, as mentioned in my notes yesterday, their could be some consolidation in the new range, before indices make any advancements.
  • Dollar Index and US Yields are stable, so do not expect surprises there. The FED meet is the most important event this week. While i feel, after a relentless selling by FII, a lot has been factored in the price. Market may still wait to make fresh strategy.
  • Manufacturing data from US and China was positive yesterday. BOJ policy statement today.
  • With our weekly expiry tomorrow, i would expect some trending moves today and partly tomorrow, to position ahead of the FED outcome. We may see some volatility as our markets are then closed for two days (Except muhurat trading) and that would leave a huge space for accumulation of events over the week end.

1. FII were net sellers for 202 Cr today, while DII were buyers for 116 Cr. A net selling of 86 Cr from the institutional side.

2. FII's created 1306 longs and created 672 shorts on the index futures

3. On the option front FII  sold 6919 calls and   sold 45502 puts. They also bought 49318 calls and  bought 39945 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17800 followed by 17700 and highest OI for CE is at 18000 followed by 18200. Highest Put writing was seen at 17800 and highest call writing was seen at 18200-18350 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 38000 followed by 39000 and highest OI for CE is at 41000 followed by 42000. Highest Put writing was seen at 39500 and highest call writing was seen at 39800 levels. 

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

7. US markets trading in green as of now

8. The breadth of the market was strong today

9. Nifty opened at 17783 and made an intra day high of 17954 and a low of 17697 before closing at 17929 .The range of Nifty for the day was 257 points.

10. Bank Nifty opened at 39432 and made an intra day high of 39862 and a low of 39120 before closing at 39763 .The range of Nifty for the day was 742 points.

11. US Dollar Index is trading at 93.968

12. All sectors closed in green today.

13. India VIX eased to 17.235

3814. US 10Y yields are at 1.580

15. Nifty futures saw short covering today

16. Bank Nifty saw long buildup


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