18th Feb' 2022 (Evening)

18th Feb' 2022 (Evening)  --  | Written at 9.00 pm on 20th Feb' 2022 |

  • Indices opened gap down on Friday and gyrated around the opening level. After making some minor gains intraday, the closing was almost at the same as opening. While Bank Nifty closed marginally in green, Nifty actually closed lower.
  • On a daily chart,  both Bank Nifty and Nifty made a bearish candle with an upper shadow, indicating resistance at higher levels. The candle on Friday was with a lower high and a lower low, so the trend kind of continues to slide. 
  • Indian indices, Generally seem to be having a bearish bias. Both Nifty and Bank Nifty seem to be showing a bearish trend on Weekly, Daily time frame. Bank Nifty is temporarily showing some strength. 
  • Though, I feel, generally it is a sell on rise market in short term, a General direction of the market in short term is difficult to predict at the moment. I would look at a breach of the first support or first resistance above to create an opinion. Also important to watch the opening and global cues coming in tomorrow morning.
  • FII on Friday sold for 2500Cr again. While DII bought for 1929Cr out of this. A net selling of 600Cr from the institutional side. A relentless selling from the FII side, will keep the markets under pressure. 
  • A reasonable breakout could only happen with a solid cash buying. I feel the overhang of US Inflation leading to higher yields, Russia Ukraine conflict and also to some extent the elections have an influence on the markets. These factors need to provide a solid cue.
  • The markets continue to be high on VIX and highly volatile. A news based market is always difficult to trade, though it offers good opportunities to make money, if one is patient and waits for the right time to position himself. Keep your risks under control and avoid leveraged and risky trades.
  • On the options front, the indices are call heavy. While there is support at 17300 and 37500 for Nifty and Bank Nifty, the calls also indicate a strong resistance at higher levels on both indices.
  • Dollar Index continues to hover around 96 and the US yields are at 1.927. So the levels remain.
  • Global markets were weak on Friday. Asian markets closed mixed and Europe and US closed in red. 
  • Economic Data coming in from US and Europe was mostly positive in the last week. For this week, watch
    • Mon - US Markets closed
    • Tue - British and German PMI data. Chinese PLR
    • Wed - European Inflation data
    • Thu - US GDP, Jobless claims and Home sales
    • Fri - German GDP, FED monetary policy report.
  • Wish you a happy trading week ahead....
1. FII were net sellers for 2529 Cr today, while DII were buyers for 1929 Cr. A net selling of 600 Cr from the institutional side.

2. FII's created 5788 longs and unwound 2517 shorts on the index futures

3. On the option front FII  created 76386 short calls and   created 73056 short puts. They also bought 64520 long calls and  bought 26716 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 17800. Highest Put writing was seen at 17300 and highest call writing was seen at 17300 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 37500 followed by 37000 and highest OI for CE is at 38000 followed by 39000. Highest Put writing was seen at 37500 and highest call writing was seen at 37500 levels. 

6. Asian markets closed mixed and Europe closed in red

7. US markets closed in red on Friday

8. The breadth of the market was extremely weak today

9. Nifty opened at 17236 and made an intra day high of 17380 and a low of 17219 before closing at 17276 .The range of Nifty for the day was 161 points.

10. Bank Nifty opened at 37344 and made an intra day high of 37817 and a low of 37304 before closing at 37599 .The range of Nifty for the day was 513 points.

11. US Dollar Index is trading at 96.105

12. Except BankNifty all setors closed in red

13. India VIX increased to 22.1650

14. US 10Y yields are at 1.927

15. Nifty futures saw short buildup

16. Bank Nifty futures saw Short covering

17. US Brent oil eased to 91.39

18. USD / INR eased to 74.684


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