11th Jan' 2022 (Evening)

11th Jan' 2022 (Evening)  --  |  Written at 10.00 PM  |

  • Responding to the weak global cues, Markets today opened flat, but then consolidated and closed slightly higher compared to yesterday. While Nifty kind of rose gradually through the day, Bank Nifty was sold off to its support level immediately after opening and then picked support to close higher.
  • The intraday range today was not very high but the recovery demonstrated was awesome. At one time it was trading 300 point lower than yesterdays close, but it managed to close in green. 
  • While Nifty made a bullish candle, Bank Nifty made a small bullish candle with a large lower shadow, indicating buying at lower levels.
  • Nifty
    • Support
      • First support at 18000
      • Second support at 17875
    • Resistance 
      • First resistance at 18100
      • Second resistance at 18200
  • Bank Nifty
    • Support
      • First support at 38250
      • Second support at 38025
    • Resistance 
      • First resistance at 38500
      • Second resistance at 38775
  • FII today bought for 111Cr in cash and DII also bought for 378Cr in cash. FII however, unwound a huge number of longs and some shorts on Index futures. This unwinding of longs and shorts both seem to be an indication of a concern on the bulls riding high and unwillingness to put in cash. At this juncture I believe the market is kind of directionless. 
  • I would play a bit cautious now and wait for a direction to evolve. As mentioned yesterday, a rising VIX with a rising market is an indication of this concern being widely felt. The market range has expanded and as mentioned yesterday, volatility should be on its way. Lets see.
  • The US market is creating the nervousness as the Inflation data is a cause for concern and both Dow and Nasdaq seem to be nervous. 
  • Dollar Index is refusing to fall below 95.5 and also the Yields continue to hover above 1.7. The concerns around the FED rate hikes keep liquidity away. 
  • The options OI indicate support at 18000 for Nifty and 38000 for Bank Nifty. While a tussle at 38500 for Bank Nifty and a range of 18000-18400 for nifty.
  • Yesterday US made a spectacular reversal and the US indices after making a deep cut, rose sharply and closed near its highs. This supported the sentiment globally and the close today in US would be important to set the tone tomorrow.
  • In any case the levels above prevail.

1. FII were net buyers for 111 Cr today, while DII were buyers for 378 Cr. A net buying of 489 Cr from the institutional side.

2. FII's unwound 9297 longs and unwound 5396 shorts on the index futures

3. On the option front FII  sold 5384 calls and   sold 775 puts. They also bought 1262 calls and  unwound long 15897 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 18500 followed by 18400. Highest Put writing was seen at 18000 and highest call writing was seen at 18400 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 38500 followed by 39000. Highest Put writing was seen at 38500 and highest call writing was seen at 38500 levels. 

6. Asian markets closed mixed and Europe trading in green

7. US markets trading in red as of now

8. The breadth of the market was weak today

9. Nifty opened at 17997 and made an intra day high of 18081 and a low of 17964 before closing at 18055 .The range of Nifty for the day was 117 points.

10. Bank Nifty opened at 38370 and made an intra day high of 38504 and a low of 38031 before closing at 38442 .The range of Nifty for the day was 473 points.

11. US Dollar Index is trading at 95.890

12. Sectors were mixed today with Metals leading the fall and IT leading the rise

13. India VIX increased to 17.7575

14. US 10Y yields are at 1.771

15. Nifty futures saw short covering

16. Bank Nifty futures saw short covering

17. US Brent oil eased to 82.26

18. USD / INR increased to 73.891

 

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