4th Jan' 2022 (Evening)

4th Jan' 2022 (Evening)  --  | Written at 10.00 PM |

  • Markets opened gap up today, made some gains, gave an indication of some profit booking twice but then in the last two hours made a steep rise to close at the day highs.
  • Reliance, HDFC Bank, SBI and some IT names were behind this second half rally.
  • Nifty
    • Nifty opened 60 points higher and then gained another 50 points before some profit booking was seen. This cycle was repeated once again and then in the second half a sharp rise was seen to close at day high. Nifty made a strong bullish candle on the daily chart with a decent lower shadow.
    • Support
      • First support at 17675
      • Second support at 17590
    • Resistance 
      • First resistance at 17825
      • Second resistance at 17950
  • Bank Nifty
    • Bank Nifty opened 130 points higher and then gained another 300 points, saw some profit booking and then again saw a sharp rise to close at the day highs. Bank Nifty made a bullish candle on the daily chart with a small lower shadow.
    • Support
      • First support at 36525
      • Second support at 36350
    • Resistance 
      • First resistance at 37000
      • Second resistance at 37500
  • Nifty is now trading above its swing high on 13th Dec in contrast to Bank Nifty, which is still trading below its swing high of 13th Dec. This level of 37500 is the strongest resistance Bank Nifty will have in its reversal journey. 
  • For a better understanding of levels on Nifty and Bank Nifty, refer my tweet on the same.
  • FII today bought for 1273Cr in cash and were forced to cover some shorts on Index futures. The heavy call writing yesterday indicated a consolidation on the indices, this consolidation and a resultant dip was bought in the last two hours today. 
  • From this level, i feel the markets should see some consolidation and follow global cues tomorrow. As mentioned yesterday, leveraged traders would have to wait and watch the price action tomorrow. The longs should be maintained and a stop loss on the second support levels mentioned above can be maintained. 
  • The steep rise in Covid cases and restrictions announced today by various state governments could put pressure on the markets, however, a fresh bout of liquidity is also being expected by markets and that us creating some volatility in the Dollar Index.
  • As mentioned yesterday, Dollar Index reversed from 96.5, however is still trading above 96, lets see if it takes down 95.5. If this happens, it could help boost our markets.
  • The yields in US have seen a rise and are now close to its upper range of 1.7. Hope it is rejected from 1.7.
  • As mentioned earlier, the strongest cues for markets are the FED minutes and results next week.
  • The chinese mfg PMI,  German unemployment and British mfg PMI were positive, however US mfg PMI and Job openings in US were negative.
  • Reliance and IT could boost Nifty further, however, Bank Nifty seems to be in a bit of pressure in short term.

1. FII were net buyers for 1273 Cr today, while DII were buyers for 532 Cr. A net buying of 1805 Cr from the institutional side.

2. FII's created 259 longs and unwound 7407 shorts on the index futures

3. On the option front FII  sold 636 calls and   sold 21342 puts. They also bought 9848 calls and  bought 14078 Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17600 followed by 17500 and highest OI for CE is at 18000 followed by 17800. Highest Put writing was seen at 17700 and highest call writing was seen at 18000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 36000 followed by 36500 and highest OI for CE is at 37000 followed by 38000. Highest Put writing was seen at 36500 and highest call writing was seen at 37000 levels. 

6. Asian markets closed in green today and Europe closed in green as well.

7. US markets trading mixed with Dow in green and Nasdaq in red

8. The breadth of the market was strong today

9. Nifty opened at 17681 and made an intra day high of 17827 and a low of 17593 before closing at 17805 .The range of Nifty for the day was 234 points.

10. Bank Nifty opened at 36551 and made an intra day high of 36887 and a low of 36374 before closing at 36840 .The range of Nifty for the day was 513 points.

11. US Dollar Index is trading at 96.180

12. Led by Energy, except for Pharma, Metal and realty all sectors closed in green

13. India VIX eased to 16.1200

14. US 10Y yields are at 1.675

15. Nifty futures saw long buildup

16. Bank Nifty futures saw short covering

17. US Brent oil increased to 80.03

18. USD / INR increased to 74.535


Comments

Post a Comment

Popular posts from this blog

4th November' 2022 (Evening)

Image
4th November' 2022 (Evening)   --  | Written at 8.00 PM on 6th November' 2022  | Publishing the notes after a gap today. So first sorry for that. Having a full time day job, brings its own set of challenges and sometimes, the work pressure makes it extremely difficult to squeeze time to analyze and publish the analysis. I mentioned in the previous notes that a major resistance at 17900 will be breached and advised to watch the price action. The indices pleasantly obliged and have been holding strong at these levels. On Friday also, #Nifty made a strong bullish candle on the daily chart. It has also ended the weekly candle strong on a bullish note. #BankNifty is showing some exhaustion and is witnessing a brutal tug off war between bulls and bears. We will discuss all this, but before that, levels... From the levels above, 18200 seems to be a resistance level for #Nifty and 41550 the resistance for #BankNifty. However, if we compare the range of first support to first...
Read more

28th October' 2022 (Evening)

Image
28th October' 2022 (Evening)   --   |  Written at 9.30 PM on 30th October' 2022   | The last month closed on a high note. Starting weak, the month of October saw decent gains and closed almost at month highs. Market was still strong and on the first day of the current series also, the indices were relatively strong.  #Nifty made 4 consecutive bullish candles on the daily chart. #BankNifty made a bearish candle after 3 bullish candles, however still made a higher high and a higher low. Levels : Both #Nifty and #BankNifty are in a range of 17650 to 17900 and 39825 to 41550 respectively. In this range #BankNifty saw some profit booking on Friday, while #Nifty is yet to test the upper level. I expected #Nifty to test 17900 on Friday, however this did not happen. This may probably get breached in the opening tomorrow. Important to see is that will this trigger a profit booking and a rejection of the level or will the level hold. On Friday, the first tr...
Read more

25th October' 2022 (Evening)

25th October' 2022 (Evening)   --   |  Written at 11.00 PM on 26th October' 2022  | 1. FII were net selling for 247 Cr today, while DII were buyers for 872 Cr. A net buying of 625 Cr from the institutional side. 2. FII's created 1390 longs and unwound 17862 shorts on the index futures 3. On the option front FII  unwound 7656 short calls and   unwound 28440 short puts. They also closed 34543 long calls and  closed 96232 long Puts. 4. For next week expiry, Nifty has the highest OI for PE at 17500 followed by 17600 and highest OI for CE is at 18000 followed by 17800. Highest Put writing was seen at 17700 and highest call writing was seen at 17800 levels. 5. For the next week expiry, Bank Nifty has the highest OI for PE at 40000 followed by 40500 and highest OI for CE is at 42000 followed by 41500. Highest Put writing was seen at 41100 and highest call writing was seen at 41500 levels.  6. Asian markets closed mostly in green today and ...
Read more