16th Feb' 2022 (Evening)

16th Feb' 2022 (Evening)  --  | Written at 9.30 PM |

  • As expected, the Indices were in a consolidation mode today. After a higher opening, the indices gave away some gains, picked support and rose again, only to lose it again at the end of the day. The Indices gave two swings in the day with almost same high and low. 
  • On a daily chart the Indices made bearish candles with a higher high and higher low. The chart structure is intact to see some more gains. However, do not forget, we are in a news based market, so beware of NEWS.
  • Levels 
    • Nifty held the 17250 level today and above this, it may make fresh attempt to rise further. Todays high of 17490 continues to be a resistance. If this level is taken down, we may see a rise towards 17650.
    • Bank Nifty has to stay above 37750 to make a fresh attempt towards 38500, of taken down, it may open 38900. Lets see..
  • The overhang of Russia Ukraine hasn't gone. Just a reminder.
  • The US 10 Y yields are now at 2.040 and are now stable at that level. Market however, seems to have absorbed this level. The Dollar Index has inched lower and is now at 95.870.
  • FII continue to sell in cash and sold for 1890Cr today. The DII absorbed 1180 Cr from this. So a net selling from the institutional side. They however, made some fresh longs and fresh shorts on Index futures. Their activity on the options side was not heavy.
  • After the short covering yesterday, both the indices saw a short buildup today. This could be a concern, as i expected a long unwinding today against a short buildup. So, actually i would be cautious and not very aggressive.
  • Going stock specific would be better way to play the market from here. This is one of the reason, i have added stock levels. As mentioned, i would add LT, ICICIBANK, Maruti from next week. Would keep adding gradually.
  • The options OI indicate a support at 17300 for Nifty and 38000 for Bank Nifty. The expiry tomorrow could be dicey. 
  • Oil is again above 95 (Brent), this continues to keep concerns high for us.
  • VIX may continue to be high for some time. 

1. FII were net sellers for 1890 Cr today, while DII were buyers for 1180 Cr. A net selling of 710 Cr from the institutional side.

2. FII's created 9912 longs and created 3586 shorts on the index futures

3. On the option front FII  created 9838 short calls and   created 9770 short puts. They also bought 9675 long calls and  bought 2649 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 17300 and highest OI for CE is at 17500 followed by 17600. Highest Put writing was seen at 17300 and highest call writing was seen at 17600 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 38500 followed by 39000. Highest Put writing was seen at 38000 and highest call writing was seen at 38500 levels. 

6. Asian markets closed mostly in green and Europe trading in red

7. US markets trading in red as of now

8. The breadth of the market was positive today

9. Nifty opened at 17408 and made an intra day high of 17490 and a low of 17257 before closing at 17322 .The range of Nifty for the day was 233 points.

10. Bank Nifty opened at 38296 and made an intra day high of 38461 and a low of 37762 before closing at 37953 .The range of Nifty for the day was 699 points.

11. US Dollar Index is trading at 95.870

12. Pharma and Realty made some gains, while FMCG and energy were flat. Other sectors closed in red

13. India VIX eased to 20.5925

14. US 10Y yields are at 2.040

15. Nifty futures saw long buildup

16. Bank Nifty futures saw long buildup

17. US Brent oil increased to 95.59

18. USD / INR eased to 75.107


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