21st Mar' 2022 (Evening)

21st Mar' 2022 (Evening)  --  |  Written at 10.30 PM  |

  •  First of all, apologize for not being able to post updates from some time. Was bogged down with multiple issues, hence could not spend quality time on the markets. Would try to be regular going forward.
  • Since, i am doing an analysis after a gap. Would keep it brief and get to depth in a day or two.
  • Generally speaking the Indices have been roaring from past two weeks. After the low made on 8th Mar, Indices have not looked back. Bulls had a great time, trapping a good amount of bears in the market.
  • Lets look at the levels below :
  • After a stellar rise for two weeks, both Nifty and Bank Nifty made bearish engulfing candles today. I suspect, some profit booking and consolidation is on the cards from here. Important levels to watch are 16825 and 35900 for Nifty and Bank Nifty respectively. A Breach of these levels could pull the Indices down to 16550 and 34700 respectively. 
  • I feel the sharp rise seen lately, has left some gaps and these gaps need to be bridged. First of these has been filled today. Lets see if the remaining ones also get filled in the days to come.
  • FII buying on Friday, i feel could be a misnomer. It was probably more due to FTSE rebalancing and not so much due to a change in the FII stance. 
  • FII stance continues to be bearish. They booked profits on their Index future longs and created shorts as well. Moreover, they sold a huge number of calls on Index. Their stance on Stock futures was also similar.
  • Dollar Index continues to be strong and the US yields are above 2. While both of these seem to have been priced in, they still continue to be a barrier for the FII capital to return.
  • With the war now almost fully priced in, the fresh risk seem to be the rising Covid cases globally. While the market has been conveniently ignoring the same, it could hurt anytime if it results into fresh lockdowns in the country. At the moment it is a bit distant though. 
  • Inflation would continue to hurt. The oil prices are rising again and continue to be volatile.
  • For today, this is all. Would discuss more from tomorrow onwards.


1. FII were net sellers for 2962 Cr today, while DII were buyers for 252 Cr. A net selling of 2710 Cr from the institutional side.

2. FII's unwound 4134 longs and created 2041 shorts on the index futures

3. On the option front FII  created 134376 short calls and   created 24804 short puts. They also bought 132196 long calls and  bought 82888 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 16000 followed by 16500 and highest OI for CE is at 18000 followed by 17500. Highest Put writing was seen at 16500 and highest call writing was seen at 18000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 36000 followed by 35000 and highest OI for CE is at 37000 followed by 36500. Highest Put writing was seen at 36000 and highest call writing was seen at 36500 levels. 

6. Asian markets closed mixed today and European markets are trading mixed s well.

7. US markets trading in red as of now.

8. The breadth of the market was weak today

9. Nifty opened at 17329 and made an intra day high of 17353 and a low of 17096 before closing at 17117 .The range of Nifty for the day was 257 points.

10. Bank Nifty opened at 36545 and made an intra day high of 36600 and a low of 35900 before closing at 36018 .The range of Nifty for the day was 700 points.

11. US Dollar Index is trading at 98.215

12. Except Metals and Media, almost all sectors closed in red

13. India VIX increased to 24.6225

14. US 10Y yields are at 2.244

15. Nifty futures saw short buildup

16. Bank Nifty futures saw Short buildup

17. US Brent oil increased to 114.71

18. USD / INR increased to 76.204

 

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