23rd Nov' 2021 (Evening)

23rd Nov' 2021 (Evening)  -- | Written at 9.30 PM |

  • Markets today opened gap down today but then started consolidating from there and closed in green, breaking the trend of continuous bearish candles from last five days.
  • Nifty
    • Nifty opened 120 point lower, but from there it continued to consolidate and rise higher to close strong and made a strong bullish candle on the daily chart.
    • Support
      • First support at 17400
      • Second support at 17325
    • Resistance 
      • First resistance at 17560
      • Second resistance at 17700
    • The recovery today was encouraging and gives hope of further movement. However, As mentioned yesterday, Nifty continues to be vulnerable till it gives a close above 17700 and then above 18025. These two important levels define two distinct trading range for the index.
  • Bank Nifty
    • Bank Nifty opened lower by 350 points as well. But then it also consolidated intraday and closed strong making a bullish candle for the day.
    • Support
      • First support at 37000
      • Second support at 36650
    • Resistance 
      • First resistance at 37450
      • Second resistance at 37800
    • The recovery of Bank Nifty was not as strong as Nifty today. As mentioned yesterday, the range of 37400 - 37800 is a strong demand zone. Ban Nifty is strong above this range and vulnerable to weakness below 36650. 
  • FII again sold for and heavily, for almost 4500Cr in the cash today. However, they created some longs today and created less shorts in the Index futures. They also unwound a good number of Index calls and wrote Index puts. The writing of puts and unwinding of calls from here is a good sign for a short term pull back.
  • With Monthly expiry just two days away, this could well be a positioning for the monthly closing.
  • The Dollar Index as of now has eased from a high of 96.62 and is currently at 96.44. However, the US 10 Y yields have now started niching higher and this is not a good sign. However, they are still below its earlier high of 1.775. Any rise upwards from there could be seen as detrimental for the foreign capital.
  • The FII money is still positive in the primary market. The pain is mostly in the secondary market. So, my theory of some money coming in secondary market from Primary may hold good. Lets see.
  • DII bought today for 1412Cr. However, the level where they came in today was probably the opening lows. As mentioned yesterday, I would count on as a short term low created at the current levels, a confirmation of a reversal has not come yet. The levels mentioned above are important levels to be watched for that.
  • the options OI indicate a support at 17500 and 37000 for Nifty and Bank Nifty respectively. For weekly and expiry traders, these two days could be deceptive. So either stay away or exercise extreme caution. DISCLAIMER "I am not an expiry trader"
  • Economic data coming in from Europe (Germany and UK) was positive today. However, the rising cases of Covid in Europe and US have put on a new risk to the Global markets. Both Germany and US are seeing record cases and some European countries have suffered fresh restrictions. So, keep watching this....
1. FII were net sellers for 4477 Cr today, while DII were buyers for 1412 Cr. A net selling of 3065 Cr from the institutional side.

2. FII's created 5549 longs and created 2258 shorts on the index futures

3. On the option front FII  unwound 21562 calls and   sold 61854 puts. They also bought 6072 calls and  bought 43433 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17300 followed by 17500 and highest OI for CE is at 18000 followed by 17800. Highest Put writing was seen at 17500 and highest call writing was seen at 17500 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 37000 followed by 36500 and highest OI for CE is at 38000 followed by 39000. Highest Put writing was seen at 37000 and highest call writing was seen at 37400-37600 levels. 

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

7. US markets trading mixed with Dow mildly in red and Nasdaq 0.75% down

8. The breadth of the market was extremely strong today

9. Nifty opened at 17281 and made an intra day high of 17553 and a low of 17216 before closing at 17503 .The range of Nifty for the day was 337 points.

10. Bank Nifty opened at 36787 and made an intra day high of 37448 and a low of 36647 before closing at 37272 .The range of Nifty for the day was 801 points.

11. US Dollar Index is trading at 96.438

12. led by metals All sectors closed in green today

13. India VIX inreased to 18.0150

14. US 10Y yields are at 1.644

15. Nifty futures saw long buildup

16. Bank Nifty futures saw long buildup


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