2nd Feb' 2022 (Evening)

2nd Feb' 2022 (Evening)  --  | Written at 10.00 PM  |

  • Markets opened to strong global cues today and then made decent gains before a small dip, The dip was bought and the markets closed at their highs. Both the Indices made strong bullish candles on the daily chart and seem to be making a strong swing towards its recent highs.
  • Looking at the Daily chart, seems the Indices are on a journey to touch 18300 on Nifty and 40000 on Bank Nifty. If these levels are taken down, we may see a fresh all time high on these indices.
  • We entered the budget light and that could be one reason for the rise as fresh positions are getting loaded into the markets.
  • Nifty
    • Support
      • First support at 17675
      • Second support at 17450
    • Resistance
      • First resistance at 17850
      • Second resistance at 17975
  • Bank Nifty
    • Support
      • First support at 39075
      • Second support at 38250
    • Resistance 
      • First support at 39575
      • Second support at 40175
  • Markets have risen far too fast due to the Budget euphoria, hence, while the view is bullish, the risk reward is not favorable. I would be looking at a target of 18300 and 40100 for Nifty and Bank Nifty. However the stop losses would be placed at the second supports above and that is a bit too risky.
  • So, one way to enter this markets is through smaller positions and paving a way through a shorter time frame. Interested people can DM me for queries on this strategy.
  • FII sold for 180Cr today, however they made strong positions on the futures and options side. They created 11000 longs on Index futures and unwound 7700 Shorts on Index futures. They also unwound short calls on Index and created fresh shorts on Index puts.
  • So from here, i may expect some cash to come in from their side. If this happens, we may see sharp move towards the targets mentioned above or maybe even fresh all time highs.
  • Dollar Index has eased to 96 now and the US yields are marginally lower. 
  • Options OI indicate support at 17700 and 39000 for Nifty and Bank Nifty respectively. 

1. FII were net sellers for 183 Cr today, while DII were buyers for 425 Cr. A net buying of 242 Cr from the institutional side.

2. FII's created 11005 longs and unwound 7778 shorts on the index futures

3. On the option front FII  unwound 18745 short calls and   created 28632 short puts. They also bought 1151 long calls and  bought 11447 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 17200 and highest OI for CE is at 18000 followed by 18100. Highest Put writing was seen at 17700 and highest call writing was seen at 18050 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 39000 followed by 38000 and highest OI for CE is at 40000 followed by 39500. Highest Put writing was seen at 39000 and highest call writing was seen at 39000-40500 levels. 

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

7. US markets trading flattish as of now

8. The breadth of the market was extremely strong today

9. Nifty opened at 17706 and made an intra day high of 17794 and a low of 17674 before closing at 17780 .The range of Nifty for the day was 120 points.

10. Bank Nifty opened at 38841 and made an intra day high of 39386 and a low of 38752 before closing at 39330 .The range of Nifty for the day was 634 points.

11. US Dollar Index is trading at 96.005

12. Led by PSU Banks and Bank Nifty almost all sectors closed in green today

13. India VIX eased to 18.65

14. US 10Y yields are at 1.771

15. Nifty futures saw long buildup

16. Bank Nifty futures saw long buildup

17. US Brent oil eased to 88.65

18. USD / INR eased to 74.801


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