10th Dec' 2021 (Evening)

10th Dec' 2021 (Evening)  --  | Written on 12th Dec' 2021 at 8.30 PM |

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  • Markets on Friday opened flat to mildly in negative and then consolidated through the day in a range of 129 points and 329 points on Nifty and Bank Nifty respectively. 
  • Nifty
    • Nifty opened mildly in red and then consolidated making a low of 17405, buth then recovered to close at 17511 making a bullish candle with a long lower shadow on the daily chart. This indicates some support at lower levels.
    • Nifty has been capped circa 17540 from last two days, a break out is expected from here and if this happens tomorrow, it could elevate Nifty to the next level of 17600.
    • Support
      • First support at 17425
      • Second support at 17350
    • Resistance 
      • First resistance at 17575
      • Second resistance at 17675
    • At a close of 17511, Nifty is now in a trading range of 17475 to 17600, A close above 17600 would now be looked at, however, A close below 17475 would put Nifty back in the lower trading range of 17300-17475.
  • Bank Nifty 
    • Bank Nifty traded in pretty much similar way as Nifty, though the candle was not bullish, the opening and lower levels were almost flat. It indicates a support on lower levels. But at the same time, it has created a lower low and a lower high. It has been trading between two critical levels of 36800 and 37500 for the last three days. I expect a breach of this tomorrow. Lets see, which side...
    • Support 
      • First support at 36825
      • Second support at 36500
    • Resistance
      • First resistance at 37275
      • Second resistance at 37500
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  • FII sold for 1000Cr on Friday and unwound some longs on Index futures. Good sign that fresh shorts were not initiated and the Put writing matches with the call writing. So kind of a range bound movement expected. The intensity of cash selling has come down slightly, this could be a good sign.
  • US closing on Friday was strong and this could give a strong handover to our markets tomorrow morning. 
  • Dollar Index is at 96 and US yields are below 1.5 so nothing concerning there.
  • The Inflation data released in US on Friday was more or less to the market expectations and this helped ease some concerns on the street, the worst probably could be over from an inflation standpoint.
  • The OI indicate a support at 17400 for Nifty and 37000 for Bank Nifty.
  • While the Omicron concerns have subsided as of now, Keep an eye on it, I consider as a risk on the edge.
  • I feel the sentiment is also picking up lately and this could help support the market.
  • For the next week watch for Tankan manufacturer Index on Mon, US PPI on Tue, Chinese Industrial production data on Tue, Retail sales data from US on Wed, Most important events are loaded on on Thu with FED commentary and Interest rate decision, German and British mfg PMI, European interest rate decision, Building permit and Jobless claims from US, Bank of Japan policy on Fri, European CPI on Fri.
  • The week is loaded woth data as the next week is start of holiday season for western countries.
  • Wish you a happy trading week ahead....

1. FII were net sellers for 1092 Cr today, while DII were buyers for 386 Cr. A net selling of 706 Cr from the institutional side.

2. FII's unwound 14943 longs and created 73 shorts on the index futures

3. On the option front FII  sold 38144 calls and   sold 33404 puts. They also bought 29775 calls and  bought 33512 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17400 followed by 17200 and highest OI for CE is at 17500 followed by 17600. Highest Put writing was seen at 17400 and highest call writing was seen at 17600-18000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 37000 followed by 36000 and highest OI for CE is at 38000 followed by 37000. Highest Put writing was seen at 37000 and highest call writing was seen at 37500 levels. 

6. Asian markets in red on Friday and European markets also closed in red

7. US markets closed in green on Friday

8. The breadth of the market was extremely strong today

9. Nifty opened at 17476 and made an intra day high of 17534 and a low of 17405 before closing at 17511 .The range of Nifty for the day was 129 points.

10. Bank Nifty opened at 37083 and made an intra day high of 37153 and a low of 36824 before closing at 37105 .The range of Nifty for the day was 329 points.

11. US Dollar Index is trading at 96.074

12. Markets were led by Media, Realty and PSU banks, however other sectors were marginally strong

13. India VIX eased to 16.06

14. US 10Y yields are at 1.482

15. Nifty futures saw long unwinding

16. Bank Nifty futures saw long buildup

 

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