23rd Mar' 2022 (Evening)

23rd Mar' 2022 (Evening)  --  | Written at 11.00 PM |

  • Following a strong global handover and strong cues coming in, the indices opened gap up. However, after a small gain, the selling started, pushing the indices to close at the lower end of the day.
  • Nifty closed 70 points lower and Bank Nifty closed 200 point lower. The trading range of the day was 243 and 763 point respectively for Nifty and Bank Nifty respectively.
  • Nifty and Bank Nifty both made bearish candles on the daily chart and seem poised to retest yesterdays lows. A breach of yesterdays lows could pull the market further down. 
  • Lets look at the levels below :


  • On the options side, there was heavy call writing today and the call writers have positioned themselves from 17500 and 36500 onwards on Nifty and Bank Nifty respectively. Also the support seem to be at 16700 and 36000.
  • The wide range could be an indication of volatility and a wide trading range in tomorrow's expiry. So, if one is an expiry trader, he has to be careful tomorrow.
  • FII bought in cash today, however, they sold the Index futures. This could be more on Bank Nifty as there is a good amount of short buildup on it. However, some short positions on Nifty cannot be denied. 
  • With Europe and US trading in red as of now, it could happen that we see a gap down opening tomorrow. This could trigger some stop losses and pull the index down sharply. As mentioned above, expiry traders should be careful.
  • Dollar Index is stable at 98.645 and the yields have marginally eased to 2.335. This would continue to keep the pressure lid on the indices.
  • As of now, Nifty seems stronger than Bank Nifty. Sectorally, IT, Reliance and Oil and gas, Metal stocks seem to be strong. An out performance from Reliance has helped Nifty. Lets see if this continues tomorrow.

1. FII were net Buyers for 481 Cr today, while DII were sellers for 294 Cr. A net selling of 187 Cr from the institutional side.

2. FII's unwound 3785 longs and created 8842 shorts on the index futures

3. On the option front FII  created 29033 short calls and   unwound 2654 short puts. They also created 18928 long calls and  unwound 514 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 16500 followed by 17000 and highest OI for CE is at 17500 followed by 17600. Highest Put writing was seen at 16700 and highest call writing was seen at 17500 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 35000 followed by 36000 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 mostly in green and Europe is trading in red

7. US markets trading in red as of now.

8. The breadth of the market was weak today

9. Nifty opened at 17405 and made an intra day high of 17442 and a low of 17199 before closing at 17245 .The range of Nifty for the day was 243 points.

10. Bank Nifty opened at 36627 and made an intra day high of 36827 and a low of 36064 before closing at 36147 .The range of Nifty for the day was 763 points.

11. US Dollar Index is trading at 98.645

12. Led by auto, except energy, pharma and metals, almost all sectors closed in red.

13. India VIX increased to 24.7475

14. US 10Y yields are at 2.335

15. Nifty futures saw long unwinding

16. Bank Nifty futures saw short buildup

17. US Brent oil increased to 120.84

18. USD / INR increased to 76.476

 

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