11th Feb' 2022 (Evening)

11th Feb' 2022 (Evening)  --  | Written on 13th Feb' 2022 at 8.00 PM |

• Indices on Friday opened gap down and then slid further from there and closed 230 and 490 point lower on Nifty and Bank Nifty respectively. Before closing they made a 70 and 120 point recovery, so to that extent the intraday dip was lower.
• Both Indices made bearish candles on a daily chart. While Nifty was a strong negative candle with a reasonable lower shadow, Bank Nifty was a bearish candle with a reasonable size upper shadow and  a small lower shadow, still indicative of some weakness.
• Levels :
• 
• Seeing the Levels, the first and second supports are already very close and looking at the short term direction and the global sentiment, we may breach both of them in the opening itself tomorrow.
• This opens gates then to the next important level and these levels stand at 17025 and 37300 for Nifty and Bank Nifty respectively. However, I would not recommend a chase down after the gap down opening. Look at your risk reward and the global sentiment before taking any position.
• As mentioned, I planned to add some stocks in the levels above. Today, i have added HDFCBank on this tracking list. Will try to add more as we progress. Hope this would help.
• FII on Friday bought for a small 108Cr. Though the buying is small, it has come after a long time. On the Index futures though, they are net sellers. There was an unwinding of 6300 longs and creation of 5600 shorts in Index futures. DII on the other hand were sellers on Friday.
• On the options front also the FII sold more calls than puts and bought double the number of puts than calls. So their stance is bearish on the F&O side. 
• Globally the sentiment is not good. Most of the Asian markets closed in red, Europe closed in red and the three major US Indices also closed in red. We would react to this tomorrow. I would generally be bearish for tomorrow, however, would keep a keen eye on the global cues.
• Russia Ukraine, US Inflation are the key over hangs on the markets as of now. This need to be on your watchlist for a risk assessment and hedging plan.
• On the options OI, support is seen at 17100 and 38500 for Nifty and Bank Nifty respectively.
• Watch for the action in the first hour of trading tomorrow before taking any position. A blind chasing of the gap down should be avoided. Risk mitigation is of extreme importance always.
• Dollar Index is around 96 and the Yields has inched back below 2 and are at 1.918. Still above our comfort zone. A faster rate hike is the talk of the town in US and as per Goldman Sachs the FED may increase the rate seven times this year. As per the talks on the street, a first hike of 0.5% is factored in the price now.
• For next week events watch :
• Mon - ECB president speech Tue - Japanese GDP, British Earnings Index, German economic sentiment and US PPI (very important) Wed - British CPI and US retails sales data Thu - FOMC minutes, US Jobless claims and building permit Fri - British retail sales and US home sales.
• Wish you a happy trading week ahead.....

1. FII were net buyers for 108 Cr today, while DII were sellers for 696 Cr. A net selling of 588 Cr from the institutional side.

2. FII's unwound 6387 longs and created 5606 shorts on the index futures

3. On the option front FII  created 76227 short calls and   created 52499 short puts. They also bought 51372 long calls and  bought 101824 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 17400 and highest OI for CE is at 17500 followed by 17600. Highest Put writing was seen at 17100 and highest call writing was seen at 17400 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 38500 followed by 38000 and highest OI for CE is at 40000 followed by 39000. Highest Put writing was seen at 38500 and highest call writing was seen at 38500 levels. 

6. Asian markets closed mostly in red on Friday and Europe also closed in red

7. US markets closed deep in red on Friday

8. The breadth of the market was extremely weak on Friday 

9. Nifty opened at 17451 and made an intra day high of 17454 and a low of 17303 before closing at 17374 .The range of Nifty for the day was 151 points.

10. Bank Nifty opened at 38567 and made an intra day high of 38790 and a low of 38396 before closing at 38517 .The range of Nifty for the day was 394 points.

11. US Dollar Index is trading at 96.047

12. Led by IT, all sectors closed in red on Friday

13. India VIX increased to 18.68

14. US 10Y yields are at 1.918

15. Nifty futures saw short buildup

16. Bank Nifty futures saw long unwinding

17. US Brent oil increased to 95.05

18. USD / INR increased to 75.643