3rd Dec' 2021 (Evening)

3rd Dec' 2021 (Evening)  --  |  Written on 5th Dec' 2021 at 9.00 PM  |

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  • Markets on Friday opened flat and then got sold off, tried to pick support after two hours, but then again got sold off heavily to close in red, losing 200 points on Nifty and 300 points on Bank Nifty.
  • Nifty
    • Nifty made a strong bearish candle on the daily chart. Though it did close above 17150 and made a higher high and higher low formation. A breach of 17150 tomorrow, could weaken Nifty again. Protection of this important low tomorrow could give strength to Nifty.
    • Support
      • First support at 17140
      • Second support at 17060
    • Resistance 
      • First resistance at 17325
      • Second resistance at 17400
  • Bank Nifty
    • Bank Nifty made a strong bearish candle on the daily chart, with a consolation of a upper and lower shadow, indicating a range. However, it did engulf the bullish trend of Bank Nifty from last two days. A higher trading range and a lower low close indicates weakness and may push it down. 
    • Support
      • First support at 36050
      • Second support at 35825
    • Resistance
      • First resistance at 36475
      • Second resistance at 36750
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  • The trigger seemingly came from the Omicron cases in India and is expected to keep the market on edge for some time to come. While there are some news over the weekend that Omicron may not turn out to be that lethal, the nervousness is expected to prevail and steam volatility.
  • On the other hand, US saw some interesting but intriguing data on Jobs. This combined with the Inflation and Omicron will keep the market Jittering. US saw lowest unemployment from the pandemic but also saw very less Job creation against expectations.
  • Today India saw many more cases of Omicron and our markets would react to this tomorrow. Lets see...
  • FII again sold for 3000Cr plus on Friday and also unwound 20K plus longs and created around 6K shorts. They also sold close to 100K calls on Index. A synergetic stance classic of a bearish sentiment. 
  • With a heavy shorting expected from FII and a mixed sentiment on Omicron in India, i keep my fingers crossed for tomorrow. An early breach of first supports above could trigger a heavy selling.
  • Bank Nifty seems a bit more stronger than Nifty at the moment, however, if the cloudburst happens, it may give way as well. Weakness on Bank Nifty is majorly from KotakBank. With HDFCBank, ICICIBank and SBI close to strong supports, i am a bit hopeful, that it should hold some ground here.
  • For Nifty, performance of Reliance is critical as of now.
  • The economic data released last week, was mixed with the manufacturing activity being weak, however the jobs data was particularly strong. New job creating though slowed, indicating a slow down on the economic recovery. This could add to the pressure generated for reasons mentioned above.
  • For this week, the most important event for us is the RBI interest rate decision on 8th Dec. Also keep an eye on German economic sentiment on Tue, Japanese GDP on Wed, Jobless claims from US on Thu, US Core CPI on Fri. 
  • With Dollar Index around 96 it has in a range, i suspect it may rise again. If 96.22 is taken off in this rise, a rise towards the recent high may resume and bring bad news for us. Watch for Global Cues coming in on Monday morning -- A strong watch.
  • Wish you a happy trading week ahead....

1. FII were net sellers for 3356 Cr today, while DII were buyers for 1648 Cr. A net selling of 1708 Cr from the institutional side.

2. FII's unwound 20780 longs and created 6108 shorts on the index futures

3. On the option front FII  sold 95627 calls and   sold 4092 puts. They also bought 57360 calls and  bought 42534 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 17200 and highest OI for CE is at 17500 followed by 17400. Highest Put writing was seen at 17200 and highest call writing was seen at 17500 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 35500 followed by 36000 and highest OI for CE is at 37000 followed by 36500. Highest Put writing was seen at 35500 and highest call writing was seen at 37000 levels. 

6. Asian markets closed mixed and Europe closed in red

7. US markets closed in red with Nasdaq leading it intensely

8. The breadth of the market was weak today

9. Nifty opened at 17424 and made an intra day high of 17489 and a low of 17180 before closing at 17196 .The range of Nifty for the day was 309 points.

10. Bank Nifty opened at 36497 and made an intra day high of 36844 and a low of 36062 before closing at 36197 .The range of Nifty for the day was 782 points.

11. US Dollar Index is trading at 96.172

12. Except media all sectors closed in red

13. India VIX increased to 18.455

14. US 10Y yields are at 1.356

15. Nifty futures saw long unwinding

16. Bank Nifty futures saw short buildup


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