13th Dec' 2021 (Evening)

13th Dec' 2021 (Evening)  --  | Written at 9.00 pm  |

  • Indian indices opened gap up today and then held on for some time. Bank Nifty was stronger for a little more time, but then eventually both got sold off to close in red and at the lowest level for the day.
  • Nifty 
    • Nifty made a strong bearish candle for the day. In spite of opening gap up, it could not hold the levels and made a 300 point dip to close almost 140 point in red. Nifty's range for the day was again high. 
    • A sharp rejection at 17600 indicates a strong resistance at that level. Also, a breach of 17475 has put Nifty back into the 17340 - 17475 zone. 
    • Support
      • First support at 17340
      • Second support at 17275
    • Resistance
      • First resistance at 17475
      • Second resistance at 17575
  • Bank Nifty
    • Bank Nifty was relatively stronger today. After opening gap up, It held on for a good time, eventually giving away to sell off, though the dive was not as steep as Nifty.
    • Bank Nifty was rejected from 37500 levels and got supported at 36800. So the range remains within it for now at least. 
    • Support 
      • First support at 36800
      • Second support at 36500
    • Resistance 
      • First resistance at 37200
      • Second resistance at 37500
  • For further strength Nifty needs a close above 17600 and Bank Nifty needs a close above 37500. Watch these levels closely. In a previous tweet, i have mentioned critical levels for Nifty and Bank Nifty. Watch them.
  • FII again sold for 2700Cr in cash today. They also unwound 1000 plus longs on Index futures and created 9000 plus shorts on Index futures. At the same time they sold approx 100K calls on Index and sold just 17K puts. Indicating a bearish rangebound action. I would normally expect support to come in at the lower end of current trading range. 
  • The price action today indicated a strong resistance at todays highs and the FII shorts on Index may have been created at these levels. I would expect some more consolidation at the current levels before a fresh attempt is made take off todays highs.
  • Dollar Index and US yields have not indicated any surprise as of now.
  • Asian and European markets traded mixed today and the US markets are in red as of now. Since a FED outcome is expected this week. Some wait and watch mood will survive.
  • The CPI data released today by RBI was towards the lower range of anticipation and thus would keep RBI relaxed on liquidity front. However, a detailed inspection raises some red flags eg core inflation is still uncomfortably high at 6.1%. I feel there is nothing as of now, of which the market will take a note off.

1. FII were net sellers for 2743 Cr today, while DII were buyers for 1351 Cr. A net selling of 1392 Cr from the institutional side.

2. FII's unwound 1246 longs and created 9325 shorts on the index futures

3. On the option front FII  sold 113956 calls and   sold 17019 puts. They also bought 100893 calls and  bought 43836 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17400 followed by 17500 and highest OI for CE is at 17600 followed by 17500. Highest Put writing was seen at no reasonable and highest call writing was seen at 17600 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 37500. Highest Put writing was seen at 37000-37500 and highest call writing was seen at 37500 levels. 

6. Asian markets closed mixed today and Europe tradin mixed as well.

7. US markets trading in red as of now

8. The breadth of the market was weak today

9. Nifty opened at 17619 and made an intra day high of 17639 and a low of 17355 before closing at 17368 .The range of Nifty for the day was 284 points.

10. Bank Nifty opened at 37358 and made an intra day high of 37581 and a low of 36861 before closing at 36925 .The range of Nifty for the day was 720 points.

11. US Dollar Index is trading at 96.220

12. Except IT all sectors closed in red today

13. India VIX increased to 16.57

14. US 10Y yields are at 1.444

15. Nifty futures saw long unwinding

16. Bank Nifty futures saw short buildup


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