18th April' 2022 (Evening)

18th April' 2022 (Evening)  --  | Written at 10.30 PM |

  • Two sectors Bank Nifty and IT turned the tables upside down today. A day of ruckus created by these two sectors ended with Nifty losing 302 points and Bank Nifty losing 734 points.
  • Driven by poor results of HDFC Bank and Infosys, both the sectors were battered today. Nifty IT lost 4.6% and Bank Nifty lost 2%. Both the sectors put together have more than 50% weightage in Nifty. 
  • After the recent swing high driven by the merger news, the HDFC twins are lower than where they started.
  • Both Nifty and Bank Nifty made bearish candles after a gap down opening. Though the candle of Nifty is more like a Doji candle as it recovered the intraday losses. 
  • Nifty made a low of 17067, which is just above its support at 17000. So, if this level is held tomorrow, we may see a recovery rally till maybe 17400-17450. 
  • I feel that todays shorting was driven by a knee jerk reaction to Banking and IT results. Powered by a global sentiment, the Bears shorted the market heavily. If todays lows are sustained again tomorrow and todays highs are taken off, a decent pullback till the levels of 17450 on Nifty and 37750 on Bank Nifty is possible.
  • Lets look at the levels 


  • Options OI show a heavy call writing today, though the levels of 17000 and 37000 are supports on Nifty and Bank Nifty respectively. Also 17500 and 38000 clearly show a resistance. Bank Nifty is at a make or break level as per the options OI.
  • FII sold heavily in cash today. A total selling fig of 6387Cr has been highest lately. DII absorbed a part of this selling, but a large gap was still unfilled.
  • On the FnO side also the FII unwound some Index future longs and made some fresh shorts. 
  • General breadth of the market today was negative. Though on Nifty, the ratio of advance decline was almost 50-50. The major selling was visible in the IT and Banking sector. Sectors like Auto, Energy (Reliance), FMCG actually gained.
  • The Dollar Index has creeped above 100, the US 10Y yields are at 2.85 levels. With FED giving signs of giving a breather to tightening the liquidity may temporarily hold the rates at this level for some time. However, will that  immediately help the equity markets cannot be said.
  • Oil has risen again to 110USD plus. With some Covid concerns coming from China and the war keeping the world on the edge of their chair, sustained rally is difficult. Some sharp movements on either side are possible.
  • The chinese GDP was strong today and this could give a pulse to the markets tomorrow as their were concerns on the growth getting hampered due to Covid expansion in China.
  • Over all, i would maintain a positive bias for tomorrow, though a keen watch is necessary.... 

1. FII were net sellers for 6387 Cr today, while DII were Buyers for 3341 Cr. A net buying of 3046 Cr from the institutional side.

2. FII's unwound 3108 longs and created 1688 shorts on the index futures

3. On the option front FII  created 59507 short calls and   created 36581 short puts. They also created 63977 long calls and  created 55440 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 17400. Highest Put writing was seen at no reasonable levels and highest call writing was seen at 17400 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 37000 followed by 36000 and highest OI for CE is at 37000 followed by 38000. Highest Put writing was seen at no reasonable levels and highest call writing was seen at 37000 levels. 

6. Asian markets closed mostly in red and Europe trading in green as of now.

7. US markets trading in green as of now

8. The breadth of the market was weak today

9. Nifty opened at 17183 and made an intra day high of 17237 and a low of 17067 before closing at 17173 .The range of Nifty for the day was 170 points.

10. Bank Nifty opened at 36833 and made an intra day high of 36965 and a low of 36441 before closing at 36729 .The range of Nifty for the day was 524 points.

11. US Dollar Index is at 100.683

12. led by IT and bank Nifty, except for Energy, metals, FMCG and Auto all sectors closed in red

13. India VIX increased to 19.3350

14. US 10Y yields are at 2.851

15. Nifty futures saw short builup

16. Bank Nifty futures saw short builtup

17. US Brent oil eased to 112.82

18. USD / INR increased to 76.271


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