17th Jan' 2022 (Evening)

17th Jan' 2022 (Evening)  --  | Written at 11.30 PM |

  • Due to paucity of time making it short today.
  • Nifty
    • Support
      • First support at 18260
      • Second support at 18120
    • Resistance
      • First resistance at 18450
      • Second resistance at 18600
    • Nifty closed above its resistance at 18300 today. If it sustains here tomorrow, then it would be looking at the next second highest level of 18450. So a new all time high could be on the cards from here.
  • Bank Nifty
    • Support
      • First support at 38100
      • Second support at 37425
    • Resistance 
      • First resistance at 38450
      • Second resistance at 38750
    • Bank Nifty was trading in a tight range today and could give a breakout tomorrow. With so much consolidation in the current range, a breakout could turn out to be fast and furious here.
  • With US markets closed today, the action at our markets was low volume and thin. Tomorrow could be a strong trending day. Bank Nifty seems to be under pressure here. Partially driven by dilution of prepositioning on HDFC Bank. 
  • We may see a buildup tomorrow on this index. However, the key levels above should be kept in mind strictly.
  • FII again sold today and also were bearish on the Index futures. Their activity on the Index options side was bearish and thin as well.
  • Dollar Index and US Yields are more or less stable.
  • Options OI indicate a support at 18300 for Nifty and Bank Nifty reflects some weakness. Watch out the support at 38100 for Bank Nifty. If that is taken down, we may see a sharp correction to 37500. While i have positive bias for Bank Nifty, Honestly speaking, i am not sure about a short term breakout on Bank Nifty. Though I am bullish for long term.
  • So would go with the price action tomorrow.

1. FII were net sellers for 855 Cr today, while DII were sellers for 115 Cr. A net selling of 970 Cr from the institutional side.

2. FII's unwound 5874 longs and created 3068 shorts on the index futures

3. On the option front FII  unwound 1860 calls and   unwound 13418 puts. They also bought 571 calls and  bought 6615 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 18000 followed by 18200 and highest OI for CE is at 18300 followed by 18400. Highest Put writing was seen at 18300 and highest call writing was seen at 18300-18700 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 37000-38300 and highest call writing was seen at 38500 levels. 

6. Asian markets closed mixed and Europes closed in green

7. US markets are closed today

8. The breadth of the market was strong  today

9. Nifty opened at 18235 and made an intra day high of 18321 and a low of 18228 before closing at 18308 .The range of Nifty for the day was 93 points.

10. Bank Nifty opened at 38212 and made an intra day high of 38617 and a low of 38138 before closing at 38216 .The range of Nifty for the day was 479 points.

11. US Dollar Index is trading at 95.175

12. Pharma, IT and Bank Nifty were the only laggards today, Reliance and Auto supported Nifty today

13. India VIX increased to 16.7650

14. US 10Y yields are at 1.793

15. Nifty futures saw long buildup

16. Bank Nifty futures saw short buildup

17. US Brent oil increased to 86.37

18. USD / INR eased to 74.284


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