9th Feb' 2022 (Evening)

9th Feb' 2022 (Evening)  --  | Written at 11.00 PM  |

  • Opening to Strong global cues in the morning, Markets today started gap up and then continuously made gains to close at day highs n the evening.
  • Both Indices made strong bullish candles after the hammer candlestick made yesterday on both indices. A follow up of the strength built up yesterday is a good sign.
  • The strong rise today forced a strong short covering in the later half of the day, accelerating the rise. With tomorrow being a weekly expiry, it would be interesting to see a sustenance at these levels.
  • Nifty 
    • Support
      • First support at 17375
      • Second support at 17050
    • Resistance
      • First resistance at 17575
      • Second resistance at 17725
  • Bank Nifty
    • Support
      • First support at 38350
      • Second support at 37325
    • Resistance
      • First resistance at 38900
      • Second resistance at 39275
  • After the short covering today, Nifty has opened towards 17575 and Bank Nifty towards 38900. Nifty has stiff resistance at 17500-175575 zone and Bank Nifty has to cross 39275 again to start a fresh rise.
  • FII today sold for 892Cr in cash. They were however forced to cover their shorts on Index futures. They unwound circa 13000 shorts in Index futures and also create some 3000 longs. They were also forced to cover the call shorts on Index, due to the heavy buying by the Domestic institutions. 
  • A sustenance of this momentum is a bit questionable as most of the buying was seen on the Nifty stocks. The market breadth in general was not that strong. The market is back in its earlier range, Lets see how it moves tomorrow.
  • Dollar Index and US Yields are stable and at the same levels as yesterday. The global markets in general today were strong. Asian markets, European markets closed in green and US is also trading in green. Lets see where does the US markets close tomorrow.
  • The IT stocks gave a break out today. This helped book a good profit on the Stock futures i was holding. I see some more potential on this Index. Though, i had to book profits as I had to manage the capital.
  • Options OI showed a strong put writing today and indicates a support at 17400 and 38500 for this weeks expiry. We may see an expiry between 17400-17600 for Nifty and Bank Nifty is a bit difficult to predict. It may give a surprise on either side.
  • Tomorrow we will see the outcome of the RBI interest rate decision and that may create some volatility in the market. especially Bank Nifty.
  • From Next week, I am thinking to add some stocks in the support and resistance levels above. You may DM me if you are interested in any specific stock suggestion.

1. FII were net sellers for 892 Cr today, while DII were buyers for 1793 Cr. A net buying of 901 Cr from the institutional side.

2. FII's created 3015 longs and unwound 12961 shorts on the index futures

3. On the option front FII  unwound 50342 short calls and   created 31890 short puts. They also unwound 850 long calls and  bought 14676 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17400 followed by 17000 and highest OI for CE is at 17700 followed by 17800. Highest Put writing was seen at 17400 and highest call writing was seen at 17650 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 38500 and highest call writing was seen at 39000 levels. 

6. Asian markets closed in green and Europe also closed in green

7. US markets trading in green as of now

8. The breadth of the market was extremely strong today

9. Nifty opened at 17370 and made an intra day high of 17477 and a low of 17339 before closing at 17463 .The range of Nifty for the day was 138 points.

10. Bank Nifty opened at 38283 and made an intra day high of 38648 and a low of 38192 before closing at 38610 .The range of Nifty for the day was 456 points.

11. US Dollar Index is trading at 95.465

12. Led by Auto, Banking and Metal almost all sectors closed in green. Except PSU Bank

13. India VIX eased to 18.5550

14. US 10Y yields are at 1.923

15. Nifty futures saw short covering

16. Bank Nifty futures sa short covering

17. US Brent oil eased to 91.35

18. USD / INR increased to 74.820


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