20th Jan' 2022 (Evening)

20th Jan' 2022 (Evening)  --  | Written at 11.00 PM |

  • Markets opened to a weak set of global cues and after an initial rise, started sliding, only to recover again. Both the indices kind of made a bearish candle with a reasonable lower shadow.
  • There were clear symptoms of selling at the higher levels and at the same time, buying comes in at lower end of the day range. While, the pattern was similar yesterday and today, the DII were net sellers yesterday, while today they were buyers.
  • FII have been selling heavily again. Today their selling was more than 4500Cr and they also heavily the Index longs and shorted the Index as well. A synergetic bearish position from their side. Seems there has been buying in an attempt to hold the markets from the DII side.
  • Nifty
    • Support
      • First support at 17650
      • Second support at 17350
    • Resistance
      • First resistance at 17850
      • Second resistance at 17975
    • If 17650 is taken down tomorrow, the next level comes in only at 17350, so a deep correction may be seen in that case. The tussle at the current level has to be watched closely. 
  • Bank Nifty
    • Support
      • First support at 37575
      • Second support at 37425
    • Resistance
      • First resistance at 38100
      • Second resistance at 38850
    • Second resistance for Bank Nifty is steeper. A sustenance above 38100 could trigger a sharp short covering towards 38850.
  • Looking at the trading in US and the close following we had towards US over the last two days and Bank Nifty kind of standing out strong to the Global Cues, i feel we may see a gap up opening tomorrow and if it sustains we may see the short covering coming in. 
  • Dollar Index is now below 95.5 again and the US yields are in the same range.
  • Options OI indicate that no reasonable support exists for Nifty. For Bank Nifty still 38000 is seen as a support.
  • US economic data today was not strong. 
  • A bit tight on time for putting an analysis for the results today. However, the price action and data above should be good for tomorrow. 

1. FII were net sellers for 4679 Cr today, while DII were buyers for 769 Cr. A net selling of 3910 Cr from the institutional side.

2. FII's unwound 10194 longs and created 13084 shorts on the index futures

3. On the option front FII  sold 70763 calls and   sold 105854 puts. They also bought 109538 calls and  bought 116730 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 18000 followed by 17500 and highest OI for CE is at 18000 followed by 18500. Highest Put writing was seen at 18000 and highest call writing was seen at 18000 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 38000 followed by 38500. Highest Put writing was seen at 38000 and highest call writing was seen at 38000 levels. 

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

7. US markets are trading in green as of now

8. The breadth of the market was weak  today

9. Nifty opened at 17921 and made an intra day high of 17943 and a low of 17648 before closing at 17757 .The range of Nifty for the day was 295 points.

10. Bank Nifty opened at 38106 and made an intra day high of 38167 and a low of 37591 before closing at 37850 .The range of Nifty for the day was 576 points.

11. US Dollar Index is trading at 95.493

12. Except Metals and Realty, all sectors closed in red

13. India VIX eased to 17.7900

14. US 10Y yields are at 1.836

15. Nifty futures saw short buildup

16. Bank Nifty futures saw short buildup

17. US Brent oil increased to 88.79

18. USD / INR eased to 74.325


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