3rd Jan' 2021 (Evening)

3rd Jan' 2021 (Evening)  --  |  Written at 11.00 PM |

  • As mentioned yesterday, the markets shot like an arrow, right from the time of opening and then did not stop for even a breather. A classis day to make money. Hope it helped the readers of my notes.
  • Nifty
    • Nifty opened marginally in green and then made a strong bullish candle on a daily chart. The candle had practically no upper shadow, closing at upper end of the range today.
    • Support
      • First support at 17550
      • Second support at 17350
    • Resistance
      • First resistance at 17650
      • Second resistance at 17825
    • Above 17650, seems Nifty has opened gates to climb to reach 17825. A close above 17825 would be vital for the next move. However, some consolidation at the current level (17350-17650) is possible before the next expansion.
  • Bank Nifty
    • Bank Nifty also followed a similar trajectory as Nifty, though with a higher intensity. Making a strong bullish candle and closing at the upper end of the trading range today.
    • Support
      • First support at 36120
      • Second support at 35400
    • Resistance
      • First resistance at 36600
      • Second resistance at 37150
    • Bank Nifty seems to have picked momentum and if it takes down, 36600 can make a move towards 37150. Again some consolidation at the current levels may be seen.
  • Though the market is strongly in bullish mode, The risk reward is not in favor of fresh longs. Watch for an opportunity at a lower time frame with strict stop loss, if some aggressive folks want to play adventure.
  • FII again bought today, a second day in succession, a good sign. They also made fresh longs on Index futures and covered some shorts. Indicating support.
  • On the options side, though they wrote more calls than puts, indicating some consolidation at current levels.
  • Dollar Index saw an increase and achieved 96.275. Yesterday, it was trading at its support and has now retraced to the current level. if rejected from 96.65, it could see a breach of its support at 95.54. Well lets see...
  • US 10 Year yields have also soared to 1.617, it is still within its trading range mentioned yesterday.
  • The options OI indicate support at 17500 and 36000 for Nifty and Bank Nifty respectively. 
  • Keep watching the Covid cases though.
  • German mfg PMI today was lower than expectation today, probably due to restrictions and holidays.

1. FII were net sellers for 902 Cr today, while DII were buyers for 803 Cr. A net buying of 1705 Cr from the institutional side.

2. FII's created 5143 longs and unwound 2381 shorts on the index futures

3. On the option front FII  sold 76287 calls and   sold 33042 puts. They also bought 67346 calls and  bought 28511 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17300 followed by 17500 and highest OI for CE is at 18000 followed by 17900. Highest Put writing was seen at 17500 and highest call writing was seen at 17600-18000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 35000 followed by 36000 and highest OI for CE is at 36500 followed by 37000. Highest Put writing was seen at 36000 and highest call writing was seen at 36500 levels. 

6. Asian markets closed mixed today. Europe closed also mixed

7. US markets trading flat (though in green)

8. The breadth of the market was extremely strong today

9. Nifty opened at 17387 and made an intra day high of 17646 and a low of 17383 before closing at 17625 .The range of Nifty for the day was 263 points.

10. Bank Nifty opened at 35585 and made an intra day high of 36492 and a low of 35526 before closing at 36421 .The range of Nifty for the day was 966 points.

11. US Dollar Index is trading at 96.275

12. Led by Bank Nifty, almost all sectors closed in green (Except Pharma)

13. India VIX increased to 16.4525

14. US 10Y yields are at 1.617

15. Nifty futures saw long buildup

16. Bank Nifty futures saw long buildup

17. US Brent oil increased to 79.02

18. USD / INR eased to 74.324


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