3rd Feb' 2022 (Evening)

3rd Feb' 2022 (Evening)  --  |  Written at 9.30 PM |

  • Opening to a mixed set of cues this morning. The indices maintained a negative tone through the trading day and got continuously sold to slide and settle at the days low. While Bank Nifty made a strong bearish candle, Bank Nifty made an inside candle and shows some relative strength.
  • Nifty
    • Support
      • First support at 17450
      • Second support at 17250
    • Resistance 
      • First resistance at 17650
      • Second resistance at 17800
  • Bank Nifty 
    • Support
      • First support at 38750
      • Second support at 38325
    • Resistance
      • First resistance at 39225
      • Second resistance at 39425
  • FII selling reduced in the last two days and coupled with the positioning on the futures side, they gave a feeling that some cash may be expected. However, there was no follow through today and they sold for 1597Cr in cash today.
  • FII also unwound some longs and created 12320 shorts on Index futures. So on net basis they maintain a bearish stance. Though i feel the shorting would have been on Nifty. Bank Nifty still seems to be a relatively stronger Index.
  • Any correction towards the second support levels tomorrow would prove to be good for our markets and till 17250 and 38325 are held on Nifty and Bank Nifty respectively, i would maintain a bullish stand and hold the targets of 18300 and 40100 on Nifty and Bank Nifty respectively. This would also provide opportunity for some fresh entries at these levels.
  • DII surprisingly, were net sellers today and that added to the sharp one sided fall today. I expect their support coming back in near the levels mentioned above. Lets see.
  • Options OI indicate a broader trading range for our Indices as of now. Nifty indicates a trading range of 17000-18000 and Bank Nifty indicates a trading range of 38000 - 40000. So an interesting week ahead.
  • Dollar index has now eased substantially and is now just below its important level of 95.5. A further easing from here would construe good for our markets. US Yields however are still holding above 1.8. 
  • Most of the data released today was positive. With British and US PMI being strong and also the jobs data from US was strong. So generally the economy continuously proves to be in good shape. 
  • ITC results today were surprisingly extremely strong. The stock performed on all parameters. Be it revenue, profit and so on. This would affect the stock tomorrow, so keep watching ITS tomorrow.

1. FII were net sellers for 1597 Cr today, while DII were sellers for 370 Cr. A net selling of 1227 Cr from the institutional side.

2. FII's unwound 604 longs and created 12320 shorts on the index futures

3. Option data not relevant today

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 17500 and highest OI for CE is at 18000 followed by 17800. Highest Put writing was seen at 17000 and highest call writing was seen at 18000 levels.

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

9. Nifty opened at 17767 and made an intra day high of 17781 and a low of 17511 before closing at 17560 .The range of Nifty for the day was 270 points.

10. Bank Nifty opened at 39255 and made an intra day high of 39424 and a low of 38861 before closing at 39010 .The range of Nifty for the day was 563 points.

11. US Dollar Index is trading at 95.490

12. Except Auto all sectors closed in red today

13. India VIX increased to 19.16

14. US 10Y yields are at 1.836

15. Nifty futures saw long buildup

16. Bank Nifty futures saw long buildup

17. US Brent oil eased to 89.28

18. USD / INR eased to 74.725


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