2nd Nov' 2021 (Evening)

2nd Nov' 2021 (Evening)  -- | Written at 11.00 PM  |

  • Markets today opened gap up and were sold off slightly, picked support and stabilized. While Bank Nifty rose from there and closed strong, Nifty closed in red.
  • Nifty
    • Nifty opened gap up and then got sold off. Picked support at 17847, but could not gain much from there. It ended up making a bearish candle on the daily chart. 
    • Support
      • First support at 17825
      • Second support at 17700
    • Resistance 
      • First resistance at 17950
      • Second resistance at 18025
    • Nifty is still above its critical level and while it may have not kept pace with Bank Nifty today, it can catch up.
  • Bank Nifty
    • Bank Nifty made a  bullish candle with long upper and lower shadows, indicating some range bound movement today. Some uncertainty was obvious at the levels defined by the trading range today.
    • Support
      • First support at 39600
      • Second support at 39200
    • Resistance 
      • First resistance at 40100
      • Second resistance at 40400
    • Bank Nifty was seemingly stronger today, though driven from Short covering. Important is to see a follow through tomorrow, if it does, we may see it above 40000 tomorrow.
  • Though after a while, FII bought for 200Cr today in cash market. They however, unwound a good number of  longs in the Index Futures and created some shorts. DII on the other hand were just about did nothing, selling for a petty 6Cr in cash.
  • On the option side also FII sold more calls than puts, thus complimenting their bearish stance. 
  • Considering tomorrow being the day when FED outcome will be known and then we are not trading for two full days. We will open on Monday with three days of trading in US and FED outcome as a bonus, I believe traders will not leave heavy positions. Their adjustments tomorrow may create some volatility in the weekly expiry. Expiry traders, be careful.
  • options OI indicate a stiff resistance at 18000 for this week and 40000 on Nifty and Bank Nifty respectively.  A close above these levels are unlikely tomorrow, though this may not be the case for 11th Nov.
  • Dollar Index and Yields are unlikely to give a surprise.
  • German manufacturing Index was slightly lower than expected. DAX was unaffected though.

1. FII were net bought for 244 Cr today, while DII were sellers for 6 Cr. A net buying of 238 Cr from the institutional side.

2. FII's unwound 12551 longs and created 4242 shorts on the index futures

3. On the option front FII  sold 40461 calls and   sold 4330 puts. They also bought 14608 calls and  bought 21489 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17500 followed by 17700 and highest OI for CE is at 18000 followed by 18200. Highest Put writing was seen at 17650 and highest call writing was seen at 18000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 39500 followed by 38000 and highest OI for CE is at 40000 followed by 41000. Highest Put writing was seen at 40000 and highest call writing was seen at 40000 levels. 

6. Asian markets closed mixed and Europe trading mixed as well.

7. US markets trading in green as of now

8. The breadth of the market was negative for Nifty, but positive for broader market.

9. Nifty opened at 17970 and made an intra day high of 18012 and a low of 17847 before closing at 17888 .The range of Nifty for the day was 165 points.

10. Bank Nifty opened at 39796 and made an intra day high of 40107 and a low of 39590 before closing at 39938 .The range of Nifty for the day was 517 points.

11. US Dollar Index is trading at 94.120

12. Metals, IT, Reliance and Pharma were a drag, all other sectors were strong with Realy leading it.

13. India VIX eased to 17.06

3814. US 10Y yields are at 1.543

15. Nifty futures saw long unwinding today

16. Bank Nifty saw short covering today


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