27th Dec' 2021 (Evening)

27th Dec' 2021 (Evening)  --  | Written at 11.20 PM  |

  • Markets today opened deep in red and then dipped further. At one point Nifty was 170 point in red and Bank Nifty was 600 point in red. The indices though made a fantastic recovery from there and closed well in green.
  • Interesting part is, while the stocks in themselves traded in low volumes, the volume on indices was heavier than normal. Seems in the absence of big players, some mice were trying to play on the indices. 
  • While I did mention yesterday, that the weekly chart indicates some bottoming at the current levels, the conviction was not that strong. Somehow, the heart and mind is again not in sync to believe the momentum build today. Lets see...
  • Nifty
    • Support
      • First support at 17025
      • Second support at 16850
    • Resistance
      • First resistance at 17150
      • Second resistance at 17350
    • The resistance level above the first resistance has quite a gap. A sustained trading above 17150 may trigger a strong short covering till 17350. 
  • Bank Nifty
    • Support
      • First support at 34900
      • Second support at 34250
    • Resistance
      • First resistance at 35200
      • Second resistance at 35500
  • In general the indices are all over the place and lack a clear trend. As mentioned yesterday, a clear trend is to evolve. While the data is not consistent, it does indicate bullishness, however lack of participation in Index futures, low volumes on individual stocks, fail to spark conviction.
  • The options OI indicate a support at 17000 on Nifty and 35000 on Bank Nifty.
  • Dollar Index and US yields continue to be within the range. 
  • However, a dilution of Dollar Index and easing of USD/INR is a good sign for our markets. The Oil has risen and kind of gives a feeling on the growth of economy.
  • I would however, maintain suspicion and hold a neutral stand.
  • A clear trend would probably take time, till then making money would not be so easy, specially for option sellers. 
  • Maintain light positions and carry less overnight, is what i would advice...

1. FII were net sellers for 1038 Cr today, while DII were buyers for 955 Cr. A net selling of 83 Cr from the institutional side.

2. FII's unwound 701 longs and unwound 1365 shorts on the index futures

3. On the option front FII  sold 30019 calls and   sold 72857 puts. They also bought 110332 calls and  bought 80148 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 16500 and highest OI for CE is at 17500 followed by 17000. Highest Put writing was seen at 17000 and highest call writing was seen at 17000 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 35000. Highest Put writing was seen at 34000 and highest call writing was seen at 35000 levels. 

6. Asian markets closed mixed today. Europe also closed mixed today

7. US markets trading in green as of now

8. The breadth of the market was strong today

9. Nifty opened at 16937 and made an intra day high of 17112 and a low of 16833 before closing at 17086 .The range of Nifty for the day was 279 points.

10. Bank Nifty opened at 34573 and made an intra day high of 35143 and a low of 34233 before closing at 35057 .The range of Nifty for the day was 910 points.

11. US Dollar Index is trading at 96.080

12. Except Media most of the sectors closed in green

13. India VIX increased to 17.1175

14. US 10Y yields are at 1.479

15. Nifty futures saw long buildup

16. Bank Nifty futures saw long buildup

17. US Brent oil eased to 78.34

18. USD / INR eased to 74.990


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