29th Nov' 2021 (Evening)

29th Nov' 2021 (Evening)  --  | Written at 10.30 PM |

  • Markets opened gap up today, but were quickly and intensely sold off to the second support I mentioned yesterday. A consolidation from those levels gradually elevated the indices to day highs, but then again got sold off in the last hours to close lower.
  • Nifty
    • Nifty made a Doji kind of a candle today on the daily chart indicating a lack of clear direction. Although the closing was slightly higher than previous day, the candle was a bearish one.
    • Support
      • First support at 16950
      • second support at 16750
    • Resistance 
      • First resistance at 17150
      • Second resistance at 17225
    • Nifty dropped to 16782 today but quickly gained and came back to the closing levels of Friday. I believe a strong support exists at 16775 levels. I would expect some more recovery if the support at 16950 is respected in the early hours tomorrow. A breach of this level tomorrow may again push Nifty down to 16775 and more consistently.
  • Bank Nifty
    • Bank Nifty made a bearish candle on the daily chart with a closing slightly lower than the closing levels of Friday.
    • Support
      • First support at 35700
      • Second support at 35350
    • Resistance 
      • First resistance at 36350
      • Second resistance at 36650
    • Bank Nifty also dropped to 35327 today, but quickly gained due to the support from DII and more or less made a similar pattern intraday as Nifty, though it closed slightly lower.
  • FII again sold for 3332Cr in cash today. However, on the FnO side, they created good amount of longs on Index futures and unwound a good amount shorts as well. They also sold puts and unwound calls. So their stance on the FnO side is encouraging.
  • As mentioned yesterday, this month opened with a strong long position by the FII on the FnO side. The Omicron caused to change this on Friday, a follow through of the positions tomorrow, on the FnO side could be taken as a cue.
  • The Global cues were strong today. US futures were in green in the morning, thought this was not complimented by the Asian markets today. With Europe in green today, we will have to see the US closing and the Asian opening tomorrow.
  • With Nifty already corrected by around 10% and Bank Nifty by 16%, it actually opens the market in a good way for some cash buying from FII side. Technically however, both Nifty and Bank Nifty are in bearish territory. Both being below their 100 DEMA. Both are however at critical supports of 16750 and 35350 respectively. A good risk reward from here for the bulls.
  • For cash investors this is a good level to start buying. Do not worry about the bottom, while hopefully it may come right here. I am optimistic from here ( I mentioned this yesterday as well). We may see the volatility easing from here.
  • Home sales data from US is extremely positive today. Dollar Index and yields continue to be low. Nothing phenomenal there.
  • Options OI indicate a support at 16500-16700 for Nifty and 35800 for Bank Nifty.

1. FII were net sellers for 3332 Cr today, while DII were buyers for 4611 Cr. A net buying of 1279 Cr from the institutional side.

2. FII's created 16978 longs and unwound 8013 shorts on the index futures

3. On the option front FII  unwound 19308 calls and   sold 43268 puts. They also unwound 10338 calls and  unwound 11321 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 16500 and highest OI for CE is at 17500 followed by 17300. Highest Put writing was seen at 16500-16900 and highest call writing was seen at 17300 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 36000 followed by 35000 and highest OI for CE is at 37000 followed by 38000. Highest Put writing was seen at 35800 and highest call writing was seen at 36000 levels. 

6. Asian markets closed in red and Europe trading in green

7. US markets trading in green as of now

8. The breadth of the market was extremely weak today

9. Nifty opened at 17055 and made an intra day high of 17160 and a low of 16782 before closing at 17053 .The range of Nifty for the day was 378 points.

10. Bank Nifty opened at 36224 and made an intra day high of 36347 and a low of 35327 before closing at 35976 .The range of Nifty for the day was 1020 points.

11. US Dollar Index is trading at 96.350

12. Except IT all sectors closed in red

13. India VIX inreased to 20.8300

14. US 10Y yields are at 1.524

15. Nifty futures saw long buildup

16. Bank Nifty futures saw long unwinding


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