10th Jan' 2021 (Evening)

10th Jan' 2021 (Evening)  --  | Written at 10.00 PM  |

  • While the Global Cues were subdued this morning, our markets opened gap up, with Nifty around 100 points in green and Bank Nifty around 200 points in green. The Indices got sold off after an initial rise and then picked support at 17880 and 37930 respectively, consolidated from here and then zoomed in the second half to close higher.
  • While Nifty closed just above its resistance at 18000, Bank Nifty was particularly strong today and it kind of convincingly breached its resistance at 38000, closing at 38347. Banks seem to be making the best of rising interest rates.
  • Nifty
    • Support
      • First support at 17900
      • Second support at 17700
    • Resistance
      • First resistance at 18125
      • Second resistance at 18200
  • Bank Nifty
    • Support
      • First support at 37925
      • Second support at 37430
    • Resistance 
      • First resistance at 38450
      • Second resistance at 38775
  • FII sold today for a nominal 125Cr and DII bought for 481Cr, however, on the Index futures side, they created ~7000 shorts against ~1000 longs. Their position on the options side was bullish, they sold more puts than calls and bought a huge number of call options.
  • VIX has gone up in spite of the market generally going up today. The street fears some short term volatility. Be cautious of this, specially the weekly option traders.
  • Globally, Europe closed in red and US is trading in red as of now. The main driver for this seems to be a spurt in the yields, this particularly affects the growth sector. Nasdaq is particularly weak as of now. In our markets also, Nifty IT was an underperformer today. In fact over the last week, it is down.
  • Dollar Index has failed to breach the support at 95.5 again and is back above 96. Surprisingly, the Rupee has gained against the Dollar and the Rupee closed on a high today. This is also an indication of a short term bout of volatility. Lets see...
  • Our Markets on the other hand have made a stellar move over the past 15 trading sessions. Nifty gaining 1600 points and Bank Nifty gaining 4300 points from their swing lows on 20th Dec. This without any considerable participation from the FII. 
  • The larger question is that will the FII participate in the momentum built up and elevate the indices from here? So this would evolve with unfolding of the domestic earnings and the Inflation data from developed markets. I would not anticipate anything at the moment....
  • The options OI however, indicate a robust support at 18000 and 38000 for Nifty and Bank Nifty respectively.
  • As always, a medium term stop loss sits at the second support levels above, however, citing the recent rise in the markets, I would prefer to book some profits, if the first support is taken down.
  • Please do watch for US closing today and the global cues tomorrow morning, to gauge the market sentiment. Finally the price action is important.

1. FII were net sellers for 124 Cr today, while DII were buyers for 481 Cr. A net buying of 357 Cr from the institutional side.

2. FII's created 1086 longs and created 6929 shorts on the index futures

3. On the option front FII  sold 34993 calls and   sold 40269 puts. They also bought 60701 calls and  bought 38788 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17500 followed by 17800 and highest OI for CE is at 18000 followed by 18500. Highest Put writing was seen at 17900 and highest call writing was seen at 18100-18500 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 38000 followed by 37000 and highest OI for CE is at 39000 followed by 38500. Highest Put writing was seen at 38000 and highest call writing was seen at 38400 levels. 

6. Asian markets closed mixed and Europe closed in red

7. US markets trading in red as of now

8. The breadth of the market was strong today

9. Nifty opened at 17913 and made an intra day high of 18017 and a low of 17879 before closing at 18003 .The range of Nifty for the day was 138 points.

10. Bank Nifty opened at 37930 and made an intra day high of 38400 and a low of 37929 before closing at 38347 .The range of Nifty for the day was 471 points.

11. US Dollar Index is trading at 96.125

12. Led by PSU Banks, Auto and Media almost all sectors closed in green today

13. India VIX increased to 17.6775

14. US 10Y yields are at 1.805

15. Nifty futures saw long buildup

16. Bank Nifty futures saw long buildup

17. US Brent oil eased to 81.02

18. USD / INR increased to 74.088


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