7th Dec' 2021 (Evening)

7th Dec' 2021 (Evening)   --   | Written at 10.00 PM  |

  • Markets today opened to strong global cues. US closed strong yesterday and Asia was trading in green since opening. The recession of Omicron fears probably added cheer to the global markets. The US futures and Asia continued to make gains through the day and kept our markets on fire. 
  • Nifty 
    • Nifty opened approx 100plus point gap up and then continuously and gradually made gains to make a strong bullish candle on the daily chart. 
    • Personally, I was not sure if a pull back will happen, however, the Recession of Omicron fear, Technically a good level for Nifty to bounce and strong global cues led to the rally and Nifty regained the levels it lost yesterday. A close above 17150 is a good sign, however, a follow up rally is important from here.
    • Support 
      • First support at 17140
      • Second support at 17050
    • Resistance
      • First resistance at 17250
      • Second resistance at 17340
  • Bank Nifty  
    • Bank Nifty also opened 300plus point gap up and then made decent gains to climb upto 36800 and then settled at 36618 to make a strong bullish candle on the daily chart. While it made a decent intraday gain of 1000point from yesterday, it fell short of its critical level of 36800. Important to see if this is taken down tomorrow. 
    • Support
      • First support at 36500
      • Second support at 36300
    • Resistance
      • First resistance at 36800
      • Second resistance at 37225
  • FII again sold for 2500Cr in cash, however they unwound a huge number of shorts and created 15K longs on the Index futures. They also unwound calls and wrote a good number of puts on Index. The writing of puts is a sign of some base being built in. A sustenance of todays high may trigger some more short covering on Indices tomorrow.
  • Global Cues are strong today. Europe closed strong and US trading strong as of now. A strong US close and good Asian opening tomorrow, may provide the ingredients for a pull back to continue.
  • Dollar Index is trading strong as mentioned and its rally upwards would keep a lid on our rise here. There are still a couple of barriers we have to cross from here. These levels as as follows :
    • Nifty - 17340 - 17475 - 17600 - 17825 - 18025 - 18125 - 18200
    • Bank Nifty - 36800 - 37500 - 37900 - 38500 - 39100 - 39600 - 40160
    • So, the journey is still there, watch carefully.
  • Omicron news that the variant may not be virulent has helped ease some fears, however, the rate rise and inflation still stand strong. Do not lose sight of this. Till the uneasiness from the front of QE and inflation are eased, we may still continue to see some volatility. 
  • Concerns on the slowing of economies though have eased. German economic sentiment today was better than expectation, exports from US have increased and they indicate a pick up on economic activity. Please keep a watch on the RBI MPC commentary tomorrow. 
  • The OI now indicate support at 17200 and 36500 for Nifty and Bank Nifty respectively. 

1. FII were net sellers for 2584 Cr today, while DII were buyers for 2605 Cr. A net buying of 21 Cr from the institutional side.

2. FII's created 14946 longs and unwound 11423 shorts on the index futures

3. On the option front FII  unwound 31812 calls and   sold 53495 puts. They also bought 29150 calls and  bought 19883 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 17200. Highest Put writing was seen at 17000-17200 and highest call writing was seen at no reasonable level levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 36000 followed by 35000 and highest OI for CE is at 37000 followed by 38000. Highest Put writing was seen at 36500 and highest call writing was seen at no reasonable level levels. 

6. Asian markets in green today and Europe also in green

7. US markets trading with strength today

8. The breadth of the market was extremely strong today

9. Nifty opened at 17044 and made an intra day high of 17251 and a low of 16987 before closing at 17176 .The range of Nifty for the day was 264 points.

10. Bank Nifty opened at 36086 and made an intra day high of 36820 and a low of 36013 before closing at 36618 .The range of Nifty for the day was 807 points.

11. US Dollar Index is trading at 96.390

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

13. India VIX eased to 18.46

14. US 10Y yields are at 1.448

15. Nifty futures saw long buildup

16. Bank Nifty futures saw short covering


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