12th Jan' 2022 (Evening)

12th Jan' 2022 (Evening)  --  | Written at 10.00 PM |

  • Following strong global cues, The indices opened gap up today. Nifty opened 120 points up and Bank Nifty opened 280 points up. However, after making a sharp rise initially, they continued to trade in a narrow range.
  • Nifty traded in a range of 100 points and Bank Nifty traded in a range of 250 points. There were clear signs of a tussle between the Bulls and Bears for the day. The narrow range has to explode now. Which side?
  • Nifty
    • Support
      • First support at 18125
      • Second support at 17875
    • Resistance
      • First resistance at 18250
      • Second resistance at 18350
  • Bank Nifty
    • Support
      • First support at 38600
      • Second support at 38025
    • Resistance
      • First resistance at 38850
      • Second resistance at 39200
  • FII resumed their selling again by selling for 1000Cr today in cash. They were kind of neutral on FnO side. They sold as may calls as they sold puts and bought as many calls as they bought puts. As mentioned yesterday, a clear direction is yet to evolve. I personally feel, after a stellar run, some consolidation would be healthy for the markets.
  • The data however, has not given a reason to believe so. However, the stop losses have got deeper and the trading range for the market has got wider. A narrow daily range today just indicates that a fresh expansion is on the cards. Lets see...
  • Dollar Index has today breached the 95.5 support and is now trading at 95.15. This is a good sign for the emerging markets and ours being in its own bull run, this would pull support for the bulls.
  • The excellent IT results today, may help boos the IT pack tomorrow (if it has not already priced in). This may provide a good boost to Nifty as well. The next level for Nifty is 18350, so it is very much on the cards now.
  • Inflation data in US is pretty much in line with expectations. So this has been received well. 
  • From our standpoint, a rise in Oil prices is a cause of concern. it has already reached 85Dollars and is still counting. 
  • Omicron concerns have eased a bit now. So will the good news be the bad news now, will watch tomorrow.
  • I personally feel that the odds are in  favor of a fresh expansion, so will maintain a bullish bias. However, would trade light and avoid leveraged trades for now.
  • Options OI indicate a support at 18200 and 38500 for Nifty and Bank Nifty for now. With tomorrow also being an expiry day, I would expect a volatile day tomorrow.

1. FII were net sellers for 1001 Cr today, while DII were buyers for 1332 Cr. A net buying of 331 Cr from the institutional side.

2. FII's created 3977 longs and created 5356 shorts on the index futures

3. On the option front FII  sold 29470 calls and   sold 30442 puts. They also bought 37051 calls and  biught 36897 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17700 followed by 18000 and highest OI for CE is at 18500 followed by 18400. Highest Put writing was seen at 18200 and highest call writing was seen at 18200-18500 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 38500 followed by 38000 and highest OI for CE is at 39000 followed by 38800. Highest Put writing was seen at 38500 and highest call writing was seen at 38800 levels. 

6. Asian markets closed in green and Europe is trading in green

7. US markets trading flat as of now.

8. The breadth of the market was extremely strong  today

9. Nifty opened at 18170 and made an intra day high of 18227 and a low of 18128 before closing at 18212 .The range of Nifty for the day was 99 points.

10. Bank Nifty opened at 38719 and made an intra day high of 38851 and a low of 38604 before closing at 38727 .The range of Nifty for the day was 247 points.

11. US Dollar Index is trading at 95.150

12. Except Pharma all sectors closed in green today

13. India VIX eased to 17.1825

14. US 10Y yields are at 1.729

15. Nifty futures saw long buildup

16. Bank Nifty futures saw long buildup

17. US Brent oil eased to 84.55

18. USD / INR increased to 73.780


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