17th Feb' 2022 (Evening)

17th Feb' 2022 (Evening)  --  | Written at 10.30 PM |

  • Indices today opened marginally in green, but started losing ground as soon as the markets opened. Picked some support half through the day, then again lost ground to close at day lows.
  • The Indices however, did not breach the critical supports today. However, the markets closed just above the critical supports, this leaves little scope for the markets to absorb any negative news or cues coming in from the global markets.
  • Both Indices made bearish candles on the daily chart with lower highs and lower lows. While on a daily chart the levels have drifted lower, they haven't breached the critical levels.
  • Nifty has a critical support at 17225 and Bank Nifty has it at 37475. If these levels are breached tomorrow, we may see 17125 on Nifty and 37300 on Bank Nifty. Below 37300, Bank Nifty may retest the recent lows.
  • The reason I have mentioned additional levels above is that because the news shattered all stop losses in the last days and the slide (and recovery) was fast and furious, leading to an overruling of all supports and resistances.
  • As mentioned yesterday, the over hang of Russia Ukraine has not gone. President Biden has issued fresh warnings of a Russian Invasion. While I personally feel this may not happen ( I am not a geopolitical expert), however, even a minor skirmish could give jitters to Global markets. 
  • Added to it also keep in mind that the coming week is the last week in the Feb series. So the volatility will get additional spice.
  • FII as usual sold for 1242Cr today. While DII did buy for 900Cr from it, it left a gap of 341Cr as net selling from the Institutional side. On the Futures side, the FII created 12667 fresh longs on Index futures and created 1943 shorts on Index futures. 
  • On a month till date front, FII created 68000 longs on Index futures and unsound some 4700 Shorts. This has changed their net position from 33% longs to 58% longs. While they have sold in cash heavily, they have been hedging their positions in Futures this month. 
  • The options data for today is not relevant. Though the OI indicates a support at 17300 for Nifty and 37500 for Bank Nifty. 
  • The jobs data from SU today was negative. Discussions of a one percentage rise in FED rates, also is leading to some pessimism on the equity in short term.
  • Dollar Index has eased slightly to 95.785 and the US yields have also eased slightly to 1.963. Though they are still in the critical and to be watched range.
  • Oil has eased slightly due to the news of Iranian oil possibly entering the markets in some time.

1. FII were net sellers for 1242 Cr today, while DII were buyers for 901 Cr. A net selling of 341 Cr from the institutional side.

2. FII's created 12667 longs and created 1943 shorts on the index futures

3. The options data is not relevant.

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 17400. Highest Put writing was seen at 17300 and highest call writing was seen at 17400 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 37000 followed by 37500 and highest OI for CE is at 38500 followed by 39000. Highest Put writing was seen at 37500 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 weak today

9. Nifty opened at 17396 and made an intra day high of 17442 and a low of 17235 before closing at 17304 .The range of Nifty for the day was 207 points.

10. Bank Nifty opened at 38042 and made an intra day high of 38124 and a low of 37425 before closing at 37531 .The range of Nifty for the day was 699 points.

11. US Dollar Index is trading at 95.785

Except Energy and Media, all sectors closed in red

13. India VIX increased to 22.0050

14. US 10Y yields are at 1.963

15. Nifty futures saw short buildup

16. Bank Nifty futures saw long unwinding

17. US Brent oil eased to 93.10

18. USD / INR increased to 75..051


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