7th Jan' 2022 (Evening)

7th Jan' 2022 (Evening)  --  | Written on 9th Jan' 2022 at 11.45 pm |

  • After making some stellar move in the week, the indices felt some resistance on Friday. With Nifty making 3 bullish candles on a weekly chart and Bank Nifty making 2 bullish candles, they both made a Doji kind of candle on Friday.
  • Markets faced a stiff resistance at 18000 and 38000 for Nifty and Bank Nifty, however, they had support on the lower side as well. 
  • From an options OI standpoint, a wider range for the market could be anticipated for this week. This is logical as well, considering the level the markets have picked in one rally.
  • However, i would look at the following levels :
  • Nifty
    • Support
      • First support at 17700
      • Second support at 17650
    • Resistance 
      • First resistance at 17900
      • Second resistance at 17975
  • Bank Nifty
    • Support
      • First support at 37425
      • Second support at 37050
    • Resistance 
      • First resistance at 37850
      • Second resistance at 38150
  • FII bought for ~500Cr on Friday, DII on the other hand were net sellers for 115Cr. So a net buying for 380Cr was seen from the institutional side. The FII were kind of having a positive bias on the Index futures, as they unwound a good number of shorts against an unwinding of a negligible longs. 
  • Looking at the Options and Futures data, i have a bullish bias, though a small dip is very much possible. I would be ok for a dip till the first supports above and be cautious if it breaches the first support and reached the second support. 
  • A short term correction / consolidation is possible if the second support is breached. Cautious shorting could be looked at in case this becomes a reality.
  • Dollar Index has eased and is now again inching close to its important support at 95.5. US Yields on the other hand have breached their resistance at 1.7. A fresh expansion in this are may be seen. This could tighten some liquidity and may affect the global markets. On the Banking side, I would take this positively. Lets see...
  • Watch for these events this week :
    • Mon - Jap closed, 
    • Tue - Fed Chair testimony
    • Wed - US COre CPI
    • Thu - US Jobless claims and PPI
    • Fri - British GDP, Mfg Prod, US Core retails sales 
    • Important results - Infy, Wipro, TCS, HCLTech and HDFC Bank
  • Wish you a happy trading week ahead.....
1. FII were net buyers for 496 Cr today, while DII were sellers for 115 Cr. A net buying of 381 Cr from the institutional side.

2. FII's unwound 216 longs and unwound 6387 shorts on the index futures

3. On the option front FII  sold 29987 calls and   sold 36171 puts. They also unwound long 3853 calls and  bought 22964 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 17900. Highest Put writing was seen at 17500-17800 and highest call writing was seen at 17900-18300 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 36000 followed by 37000 and highest OI for CE is at 38000 followed by 38500. Highest Put writing was seen at 37000-38000 and highest call writing was seen at 38000-39000 levels. 

6. Asian markets closed mixed and Europe also closed mixed on Friday

7. US markets closed mixed with Dow flat and Nasdaq in red

8. The breadth of the market was weak today

9. Nifty opened at 17797 and made an intra day high of 17905 and a low of 17704 before closing at 17812 .The range of Nifty for the day was 201 points.

10. Bank Nifty opened at 37667 and made an intra day high of 38134 and a low of 37427 before closing at 37739 .The range of Nifty for the day was 707 points.

11. US Dollar Index is trading at 95.735

12. Except for Auto, Media and Pharma all sectors closed in green

13. India VIX eased to 17.6025

14. US 10Y yields are at 1.765

15. Nifty futures saw long buildup

16. Bank Nifty futures saw long buildup

17. US Brent oil eased to 81.78

18. USD / INR increased to 74.468

 

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