6th Dec' 2021 (Evening)

6th Dec' 2021 (Evening)  --  | Written at 10.30 PM |

  • Markets opened to a mixed set of global cues today, with US futures in green and Asian markets under pressure. Nifty was particularly weak for the first two hours and then everything collapsed. Nifty closed 285 points in red and Bank Nifty closed 460 points in red.
  • Nifty 
    • Nifty opened mildly in green and then was continuously sold off to make a strong bearish candle on the daily chart and below its critical support and 100 DEMA of 17140. 
    • Nifty is now in a dangerous territory and with the risk of breaching the low of 29th Nov, is now staring at and may push down to 16400 levels. 
    • Support
      • First support at 17785
      • Second support at 16690
    • Resistance 
      • First resistance at 17075
      • Second resistance at 17175
  • Bank Nifty
    • Bank Nifty had strength and held ground for the first two hours, but then eventually gave way with selling on Kotak Bank and SBI later. It is still above its critical support at 35350 and 200DEMA at 34950. I expect to pick some support from these two level.
    • Support 
      • First support at 35525
      • second support at 35350
    • Resistance 
      • First resistance at 36150
      • Second resistance at 36350
  • FII again sold today for 3000Cr plus in cash and also created some new shorts and unwound longs. Sold close to 100K calls on Index. A kind of similar setup as yesterday. 
  • With Dollar Index rising again and now at 96.4, I feel that the pain is yet to go and the FII selling could continue. The journey of Dollar Index has started for 97 and it would bring more pain to us.
  • The silver lining is that the US 10Y yields are still low, and this could be good for maintenance of liquidity in the markets. Important to watch is the RBI decision, say after tomorrow. While a rate rise is not expected, the commentary has to be keenly watched.
  • Oil prices are again on rise due to easing of concerns on Omicron and this could put some fuel in the markets. As of now Dow is trading 500 point plus in green and if this sustains, it could bring some cheer to us tomorrow morning. Europe also closed in green today.
  • The OI indicate weakness and feeble support only at 16900 for Nifty and 36000 for BankNifty. Lets see if we are able to build on it tomorrow.

1. FII were net sellers for 3361 Cr today, while DII were buyers for 1701 Cr. A net selling of 1660 Cr from the institutional side.

2. FII's unwound 6158 longs and created 7399 shorts on the index futures

3. On the option front FII  sold 96424 calls and   sold 3374 puts. They also bought 93689 calls and  bought 44423 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 17300. Highest Put writing was seen at 16900 and highest call writing was seen at 17100 levels.

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

6. Asian markets closed mixed and Europe closed in green

7. US markets trading in green with Nasdaq flat

8. The breadth of the market was extremely weak today

9. Nifty opened at 17209 and made an intra day high of 17216 and a low of 16891 before closing at 16912 .The range of Nifty for the day was 325 points.

10. Bank Nifty opened at 36252 and made an intra day high of 36344 and a low of 35696 before closing at 35735 .The range of Nifty for the day was 648 points.

11. US Dollar Index is trading at 96.418

12. Led by IT, Auto and Pharma all sectors closed in red today

13. India VIX increased to 20.0775

14. US 10Y yields are at 1.397

15. Nifty futures saw Short buildup

16. Bank Nifty futures saw short buildup


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