24th Dec' 2021 (Evening)

24th Dec' 2021 (Evening)  --  | Written on 26th Dec' 2021 at 11.30 PM  |

Page 1/2

  • Markets opened to flattish sentiments globally. Probably because moat of the Global markets were closed due to Christmas. Most of the European markets and US were closed on Friday. Asian markets were flat (and mixed) on Friday.
  • Volumes on the markets were thin on Friday, except for the IT stocks, which are the only pack looking strong as of now (barring a few outliers in some other segments).
  • Nifty 
    • Nifty opened 70 points in green, but then got sold off to make a low of 16909, picked support and recovered around 90 points near close. It made a bearish candle with a small lower shadow on the daily chart.
    • Support
      • First support at 16910
      • Second support at 16820
    • Resistance
      • First resistance at 17075
      • Second resistance at 17150
    • As of now, Nifty seems all over the place and a clear trend has not evolved. Post the recent swing low of 16410, it hasn't shown any clear trend. I personally see that unless it closes above 17150, it would not show any strength. 
  • Bank Nifty
    • Bank Nifty kind of followed a similar pattern as Nifty. It opened 90 points up and then got sold off till 34584, picked some support and made a decent recovery, but then got sold off for the second time to close at 34857, making a bearish candle with a small lower shadow.
    • Support
      • First support at 34675
      • Second support at 34400
    • Resistance
      • First resistance at 35100
      • Second resistance at 35475
Page 2 / 2
  • FII sold again for 700Cr in cash, DII action was not prominent. FII action on the F&O side was not prominent, probably due to the holidays. Though they did sell some puts, indicating a bit f support for the market. We may not see any heavy selling from their side.
  • On the options side, OI indicate a support at 16900 for Nifty and 34700 for Bank Nifty, though a strong resistance exists at 17200 and 35000 for Nifty and Bank Nifty respectively.
  • Dollar Index has eased slightly and is now again close to 96 levels. However, as i mentioned earlier, it has to breakdown below 96 for a sustained support to our markets. Dollar / INR though has definitely eased to 75 level from 76 and while this is not good for export sensitive stocks like IT, it is a good sign towards protecting flight of foreign capital.
  • Omicron is promoting restrictions globally and is causing major spike in cases in Europe. In India also it has been a cause of concern. Covid cases have started increasing once again in India. While market is prepared from Covid standpoint, it would follow any news on fresh set of restrictions and that may create some panic.
  • On a weekly chart, Nifty has made a bullish candle with a long lower shadow, indicating a good support at lower levels. On a falling market, if this is followed by another bullish candle, it could confirm a bottom and indicate a reversal. Lets watch this closely as this would well form a base for 2022. Bank Nifty on the other hand stands at its 50W DEMA, which i generally consider to be very important support levels. 
  • These levels make the base for 2022 and thus important levels to watch. However, both the indices are yet to show any sustained strength.
  • On the economic data front, this is the last week of this year and is almost closed for most of the important global markets, hence nothing big is coming on this side. Except Chinese PMI is expected on 31st Dec.
  • Wish you a happy trading week and a close to 2021....

1. FII were net sellers for 715 Cr today, while DII were sellers for 43 Cr. A net selling of 758 Cr from the institutional side.

2. FII's unwound 286 longs and unwound 1114 shorts on the index futures

3. On the option front FII  sold 6554 calls and   sold 31968 puts. They also unwound longs on 24609 calls and  bought 2822 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 16500 followed by 17000 and highest OI for CE is at 17500 followed by 17200. Highest Put writing was seen at 16500-16900 and highest call writing was seen at 17200 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 34000 followed by 35000 and highest OI for CE is at 36000 followed by 35500. Highest Put writing was seen at 34700 and highest call writing was seen at 35000 levels. 

6. Asian markets closed mixed on Friday. Many European markets were closed on Friday, however others closed in red

7. US markets were closed on Friday

8. The breadth of the market was extremely weak on Friday

9. Nifty opened at 17149 and made an intra day high of 17155 and a low of 16909 before closing at 17003 .The range of Nifty for the day was 246 points.

10. Bank Nifty opened at 35282 and made an intra day high of 35327 and a low of 34583 before closing at 34857 .The range of Nifty for the day was 744 points.

11. US Dollar Index is trading at 96.035

12. Except IT all sectors closed in red

13. India VIX increased to 16.1475

14. US 10Y yields are at 1.493

15. Nifty futures saw short buildup

16. Bank Nifty futures saw long unwinding

17. US Brent oil eased to 76.52

18. USD / INR eased to 75.004

 

Comments

Post a Comment

Popular posts from this blog

4th November' 2022 (Evening)

Image
4th November' 2022 (Evening)   --  | Written at 8.00 PM on 6th November' 2022  | Publishing the notes after a gap today. So first sorry for that. Having a full time day job, brings its own set of challenges and sometimes, the work pressure makes it extremely difficult to squeeze time to analyze and publish the analysis. I mentioned in the previous notes that a major resistance at 17900 will be breached and advised to watch the price action. The indices pleasantly obliged and have been holding strong at these levels. On Friday also, #Nifty made a strong bullish candle on the daily chart. It has also ended the weekly candle strong on a bullish note. #BankNifty is showing some exhaustion and is witnessing a brutal tug off war between bulls and bears. We will discuss all this, but before that, levels... From the levels above, 18200 seems to be a resistance level for #Nifty and 41550 the resistance for #BankNifty. However, if we compare the range of first support to first...
Read more

28th October' 2022 (Evening)

Image
28th October' 2022 (Evening)   --   |  Written at 9.30 PM on 30th October' 2022   | The last month closed on a high note. Starting weak, the month of October saw decent gains and closed almost at month highs. Market was still strong and on the first day of the current series also, the indices were relatively strong.  #Nifty made 4 consecutive bullish candles on the daily chart. #BankNifty made a bearish candle after 3 bullish candles, however still made a higher high and a higher low. Levels : Both #Nifty and #BankNifty are in a range of 17650 to 17900 and 39825 to 41550 respectively. In this range #BankNifty saw some profit booking on Friday, while #Nifty is yet to test the upper level. I expected #Nifty to test 17900 on Friday, however this did not happen. This may probably get breached in the opening tomorrow. Important to see is that will this trigger a profit booking and a rejection of the level or will the level hold. On Friday, the first tr...
Read more

25th October' 2022 (Evening)

25th October' 2022 (Evening)   --   |  Written at 11.00 PM on 26th October' 2022  | 1. FII were net selling for 247 Cr today, while DII were buyers for 872 Cr. A net buying of 625 Cr from the institutional side. 2. FII's created 1390 longs and unwound 17862 shorts on the index futures 3. On the option front FII  unwound 7656 short calls and   unwound 28440 short puts. They also closed 34543 long calls and  closed 96232 long Puts. 4. For next week expiry, Nifty has the highest OI for PE at 17500 followed by 17600 and highest OI for CE is at 18000 followed by 17800. Highest Put writing was seen at 17700 and highest call writing was seen at 17800 levels. 5. For the next week expiry, Bank Nifty has the highest OI for PE at 40000 followed by 40500 and highest OI for CE is at 42000 followed by 41500. Highest Put writing was seen at 41100 and highest call writing was seen at 41500 levels.  6. Asian markets closed mostly in green today and ...
Read more