9th Nov' 2021 (Evening)

9th Nov' 2021 (Evening)  --  | Written at 10.45 PM  |

  • Markets were mostly range bound today, with heavy selling at the upper end of the trading range. In fact, this has been a kind of pattern for some time, though it was happening in a tight range today.
  • Nifty
    • Nifty made a bearish candle today, though with a higher high and a higher low. The trading range was narrow and a long lower wick.
    • Support
      • First support at 17975
      • Second support at 17850
    • Resistance 
      • First resistance at 18100
      • Second resistance at 18200
    • Nifty seemingly was picking up support in a tight range today. A sharp rise yesterday led to some profit booking today. The tight range may break tomorrow. 
  • Bank Nifty
    • Bank Nifty seems relatively weaker than Nifty. It was actually trading in a narrow range and made an inside candle today.
    • Support
      • First support at 39200
      • Second support at 38900
    • Resistance 
      • First resistance at 39550
      • Second resistance at 39850
    • The weakness in Bank Nifty is sharp. If I am reading it right, we may see a sharp dip before it stabilizes again.
  • Indices may display some volatility before the weekly expiry tomorrow.
  • FII sold for 2445Cr today and while DII bought for 1417Cr, they fell short of a good 1000Cr. Though this was absorbed by the market and we did not see a sharp cut today. Over all breadth of the market was also strong.
  • FII unwound a good number of longs on Index futures and also created a good number of shorts. Most of this probably is on Bank Nifty, so Bank Nifty traders need to be extra careful.
  • Globally the Dollar Index is stable and US Yields continue to be below 1.5, so no surprises on that front.
  • The economic data coming in from Germany was positive today, though the markets in Europe fell.
  • The US markets are trading with a cut now, they were also a reason to keep Nifty under pressure today as from morning the US futures were trading with a cut and our markets kind of expected some eventful trading in US today. A close in US today and the opening tomorrow will be important to set the tone for our markets tomorrow.
  • The options OI indicate a support at 17900 for Nifty and 39200 for Bank Nifty. Though the options writing today was not consistent.
  • A good long trade should evolve on Nifty if it stays above 18050 tomorrow for the first hour, else a slip towards the support levels indicated may be seen. 
  • Bank Nifty continues to be in the woods and it could give some indication of strength only after a close above 40000.

1. FII were net sellers for 2445 Cr today, while DII were buyers for 1417 Cr. A net selling of 1028 Cr from the institutional side.

2. FII's unwound 21387 longs and created 7216 shorts on the index futures

3. On the option front FII  sold 21283 calls and   unwound 26975 puts. They also bought 9371 calls and  bought 7107 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17900 followed by 17500 and highest OI for CE is at 18200 followed by 18100. Highest Put writing was seen at 17500 and highest call writing was seen at 18200 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 39000 followed by 39500 and highest OI for CE is at 40000 followed by 39500. Highest Put writing was seen at 39200-39400 and highest call writing was seen at 39500 levels. 

6. Asian markets closed mixed and Europe closed in red

7. US markets trading in red as of now.

8. The breadth of the market was positive

9. Nifty opened at 18084 and made an intra day high of 18112 and a low of 17983 before closing at 18044 .The range of Nifty for the day was 129 points.

10. Bank Nifty opened at 39517 and made an intra day high of 39560 and a low of 39223 before closing at 39368 .The range of Nifty for the day was 337 points.

11. US Dollar Index is trading at 94.032

12. Auto led the gains today, Banking, Metals and FMCG were laggards

13. India VIX eased to 16.0025

14. US 10Y yields are at 1.429

15. Nifty futures saw long unwinding

16. Bank Nifty futures saw short buildup

 

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