7th Feb' 2022 (Evening)

7th Feb' 2022 (Evening)  --  | Written at 11.00 PM |

  • Indices today opened lower and then after making a quick spike, continued to slide through the day, closing at day lows. Both Nifty and Bank Nifty made strong bearish candles on a daily chart.
  • Nifty 
    • Support
      • First support at 17100
      • Second support at 16850
    • Resistance 
      • First resistance at 17350
      • Second resistance at 17525
  • Bank Nifty
    • Support
      • First support at 37800
      • Second support at 37575
    • Resistance 
      • First resistance at 38425
      • Second resistance at 38825
  • FII sold for 1157Cr today. Unexpectedly the DII also sold heavily today, leading to a sharp correction on the Indices. I did not expect Nifty to breach 17250 and Bank Nifty to breach 38300, however both the indices breached these levels. 
  • While Nifty is below its important supports and the next important support is only at 16850 after 17100, i see some more slippage possible on Nifty.
  • Bank Nifty though is sitting just close to its important supports, so I expect Bank Nifty to pick support here and seems stronger than Nifty as of now. Monthly 37500 and 38000 put of Bank Nifty is at 540 and 750, this could be a good bet. 
  • As mentioned yesterday, IT seems to be amongst the stronger lot. With the kind of selling seen today, IT kind of still held on. I am still holding longs on Futures of IT stocks.
  • Options OI indicate strong call shorting at 17500 and 38500 for Nifty And Bank Nifty respectively. While there was no specific put writing on Nifty, Bank Nifty saw some put writing at 38000. So indicates some support here.
  • Dollar Index is now stable at 95.475 and remains below 95.5, keep watching. 10 Y yields are also stable above 1.9.
  • US Inflation, RBI interest rate decision and Russia Ukraine tensions continue to maintain a lid on the markets. This may keep the broader market under pressure. I would expect Banking and IT stocks to outperform from here.

1. FII were net sellers for 1157 Cr today, while DII were sellers for 1376 Cr. A net selling of 2533 Cr from the institutional side.

2. FII's unwound 747 longs and created 11622 shorts on the index futures

3. On the option front FII  created 59433 short calls and   created 18484 short puts. They also bought 45503 long calls and  bought 44794 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 17500 followed by 17800. Highest Put writing was seen at 16800-17000 and highest call writing was seen at 17500 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 39000 followed by 40000. 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 green as well

7. US markets trading flat

8. The breadth of the market was extremely weak today

9. Nifty opened at 17456 and made an intra day high of 17536 and a low of 17119 before closing at 17213 .The range of Nifty for the day was 417 points.

10. Bank Nifty opened at 38592 and made an intra day high of 38837 and a low of 37802 before closing at 37995 .The range of Nifty for the day was 1035 points.

11. US Dollar Index is trading at 95.475

12. Metals was flat and except PSUBank and Energy, all sectors closed in red

13. India VIX increased to 20.4375

14. US 10Y yields are at 1.925

15. Nifty futures saw long unwinding

16. Bank Nifty futures saw short buildup

17. US Brent oil eased to 92.81

18. USD / INR increased to 74.680

 

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