25th Mar' 2022 (Evening)

25th Mar' 2022 (Evening)   -- | Written at 9.00 PM on 27th Mar' 202  |

  • Indices on Friday consolidated in a range, though with a negative bias. The indices saw some recovery in the last one and a half hour of trading. On a daily chart they still closed lower and made a bearish candle.
  • So both Nifty and Bank Nifty may face some pressure on the higher end of the trading range on Friday. This translates into 17200 for Nifty and 35600 for Bank Nifty. However, 17300 and 36000 would proves to be strong resistance for the indices to breach. 
  • For both the indices to continue their northward journey, it is extremely important  to take down 17500 on Nifty and 36850 for Bank Nifty.
  • The next levels to watch are 17500, 17650, 17800, 18350 on Nifty and 36850, 37600, 38050, 38500 and then 39200 for Bank Nifty. The short term trend seems to be positive and this trend may continue if the resistance mentioned above are taken down.
  • Levels :
  • This being the last week of the Mar series and also this financial year, may see huge volatility. This will be a month of NAV management and hence would drive wild movements. 
  • The trading range for this week as indicated by the options OI seems to be 16000 to 17500 for Nifty and 34000 to 37000 for Bank Nifty. Venture into trading this week, only if one has a huge risk appetite and position management skills. In any case keep the position six under control.
  • Dollar Index is at 98.8 and US yields have inched mildly higher at 2.488. This would keep a lid on the market indices as usual. 
  • US Inflation, War and Covid should be on your watchlist along with the stocks you watch.
  • On a sectoral view, Reliance and the IT stocks have shown some strength lately and this would help support Nifty. Auto and FMCG stocks show some weakness in short term. Pharma and Metals seem to be strong as well.
  • As mentioned this week being the last for this month and year, would see NAV adjustments leading to volatility. Also, the earning season starts from next week and as the results start coming, it would start toning the mood in the markets.
  • Watch for these events this week : Consumer Confidence and Job opening data from US on Tue, Non farm employment and GDP data from US on Wed, Manufacturing PMI from China, GDP data from UK, Jobs data from US on Thu, PMI data from Germany, China and UK, Mfg PMI from US and Jobs data from US on Fri.
  • Wish you a happy trading week ahead....

1. FII were net sellers for 1507 Cr today, while DII were buyers for 1373 Cr. A net selling of 134 Cr from the institutional side.

2. FII's unwound 2240 longs and created 399 shorts on the index futures

3. On the option front FII  created 46948 short calls and   created 26356 short puts. They also created 42152 long calls and  created 24924 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 18000 followed by 17500. Highest Put writing was seen at 16000 and highest call writing was seen at 18100 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 34000 followed by 35000 and highest OI for CE is at 37000 followed by 36000. Highest Put writing was seen at 35000 and highest call writing was seen at 36000 levels. 

6. Asian markets closed mixed and flattish, europe also closed mixed and flattish

7. US markets closed mixed with Dow in green and Nasdaq mildly in red

8. The breadth of the market was weak today

9. Nifty opened at 17289 and made an intra day high of 17294 and a low of 17076 before closing at 17153 .The range of Nifty for the day was 218 points.

10. Bank Nifty opened at 35700 and made an intra day high of 35717 and a low of 35203 before closing at 35410 .The range of Nifty for the day was 514 points.

11. US Dollar Index is trading at 98.843

12. Realty, Energy and PSU Banks made gains while Auto, pharma, IT and FMCG lost on Friday

13. India VIX eased to 23.43

14. US 10Y yields are at 2.488

15. Nifty futures saw long unwinding

16. Bank Nifty futures saw long unwinding

17. US Brent oil increased to 117.37

18. USD / INR increased to 76.275


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