8th Feb' 2022 (Evening)

8th Feb' 2022 (Evening)  --  | Written at 10.00 PM |

  • Responding to strong global cues, Indian Indices opened in green today, however there was heavy selling and the Indices nosedived deep into red. Nifty lost 260 points and Bank Nifty 900 points before support came in and a sharp recovery was seen to pull the indices into green. A second round of selling dragged the indices lower again, only for the dip to be bought and get the closing in green.
  • What a volatile day it was, after a long time. Trapping and killing traders on both sides. Trading such markets is a special skill, it calls for agility and flexibility. I am not a day trader, though I took some positions today and was lucky to come out unscathed.
  • Levels now look like :
  • Nifty
    • Support
      • First support at 17100
      • Second support at 17025
    • Resistance
      • First resistance at 17300
      • Second resistance at 17525
  • Bank Nifty
    • Support
      • First support at 37600
      • Second support at 37300
    • Resistance
      • First resistance at 38150
      • Second resistance at 38800
  • Todays sharp dip was bought by the DII and provided the required support to the Indices. Their selling yesterday created this unnecessary volatility. For reasons better known to them, the double sided trap today would have killed many traders.
  • FII sold again for circa 2000Cr today in cash and DII bought for 1115Cr. On the futures side the FII created 1845 longs on Index futures and unwound some shorts. They also created some longs on stock Futures. Probably on Nifty. 
  • I believe there was a heavy Index management today. FII sold in cash and when DII plunged into buying, the FII went long on some specific stock futures on the Index. 
  • Asia today was green and US is trading in green as of now. Dollar Index has inched upwards and Yields have seen a rise globally. Ahead of the FED monetary policy out come this week and for India, the RBI interest rate decision, i believe the volatility would continue to play.
  • I have been saying this continuously, long term and cash investors, keep buying the Dips and have faith in our markets and the Institutional investors. Leveraged traders, be extremely careful. The markets could trap on both sides, like today.
  • Options OI indicate a support at 17200 and 37400 on Nifty and Bank Nifty as of now. The candles created today, indicate some support at todays lows. Keep an eye on these getting breached, they may provide fresh swing lows in that case.
  • Still holding the IT stock futures :-).

1. FII were net sellers for 1967 Cr today, while DII were buyers for 1115 Cr. A net selling of 852 Cr from the institutional side.

2. FII's created 1845 longs and unwound 3191 shorts on the index futures

3. On the option front FII  created 17374 short calls and   created 14717 short puts. They also bought 25090 long calls and  bought 27829 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 16500 and highest OI for CE is at 17500 followed by 17800. Highest Put writing was seen at 17200 and highest call writing was seen at 17300 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 38000 followed by 37500 and highest OI for CE is at 39000 followed by 40000. Highest Put writing was seen at 37400-38000 and highest call writing was seen at 38000 levels. 

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

7. US markets trading in green as of now

8. While, Advance decline in Nifty stocks was in favor of bulls, The breadth of the market was extremely weak today

9. Nifty opened at 17279 and made an intra day high of 17306 and a low of 17043 before closing at 17266 .The range of Nifty for the day was 263 points.

10. Bank Nifty opened at 38176 and made an intra day high of 38222 and a low of 37319 before closing at 38028 .The range of Nifty for the day was 903 points.

11. US Dollar Index is trading at 95.605

12. Mixed on sectors, PSUBank, pharma and Metals made gains, while Auto and FMCG were flat. Rest all the sectors closed in red

13. India VIX eased to 19.6850

14. US 10Y yields are at 1.969

15. Nifty futures saw short covering

16. Bank Nifty futures long unwinding

17. US Brent oil eased to 90.33

18. USD / INR increased to 74.720


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