19th April' 2022 (Evening)

 19th April' 2022 (Evening)  --  | Written at 11.00 PM |

  • What a day it was. After a consolidation with a positive bias for the whole day, the indices just collapsed in the last 45min or so. A sudden selling across the board was seen as if there is no another day.
  • Particularly there was no reason for this selling, at least nothing that I could honestly think of. Except that probably a series of stop losses got triggered once the index kind of fell to 17050 levels.
  • Or maybe a sudden pressure felt due to the news coming in from the war and US futures turning red from a green start in the morning. As mentioned yesterday, the markets may give sharp swings on either side, else i really do not see a clear direction to the markets as yet.
  • Nifty closed after a quick rebound from its support at 16800, however it could not close above 17000 which was an important support for now. Bank Nifty on the other hand closed at 36341 which is just below its support at 36425. 
  • Important to see now.  gap up opening may place the indices above these important levels tomorrow. If these levels hold, we may see a good short covering, and if todays lows are taken down tomorrow, then we are going to see deeper trouble.
  • Markets are technically over sold in short term and a pull back is due, lets see if we can see that tomorrow.
  • FII today sold bigtime in cash and the DII tried buying, but could only absorb partially. Specifically the HDFC twins, Infosys and the IT pack were battered brutally. While the drop at 2.45 was more wide spread.
  • FII however, created some longs on Index futures and also unwound some shorts on Index futures, a good sign actually. Lets see if this gets a follow through tomorrow. They also sold more puts than calls and bought more calls than puts. A positive sign for the markets from a FnO standpoint.
  • Dollar Index after briefly crossing 101 today, settled around 100.8 again. The 10 Year yields from US also were stable around 2.8. Nothing much changed on this front. Except that the concern of a more hawkish FED is being felt.
  • Options OI indicate a support at 16700 on Nifty and a resistance of 17200. On Bank Nifty the levels seem to be from 36000 and 37000.
  • Levels :
    • Nifty
    • Support
      • First support at 16800
      • Second support at 16575
    • Resistance
      • First resistance at 17275
      • Second resistance at 17450
    • Bank Nifty
    • Support
      • First support at 35950
      • Second support at 35500
    • Resistance
      • First resistance at 37125
      • Second resistance at 37950
  • With a recovery seen in the US markets as of now, we may see a gap up opening. The question would be, will it sustain?

1. FII were net sellers for 587 Cr today, while DII were Buyers for 3980 Cr. A net buying of 3393 Cr from the institutional side.

2. FII's created 5002 longs and unwound 11326 shorts on the index futures

3. On the option front FII  created 36169 short calls and   created 22160 short puts. They also created 52594 long calls and  created 25429 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 16500 followed by 16700 and highest OI for CE is at 17500 followed by 17200. Highest Put writing was seen at 16700 and highest call writing was seen at 17200 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 36000 followed by 36500 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 36500 levels. 

6. Asian markets closed mixed and Europe trading mixed.

7. US markets trading in green as of now

8. The breadth of the market was weak today

9. Nifty opened at 17258 and made an intra day high of 17275 and a low of 16824 before closing at 16958 .The range of Nifty for the day was 451 points.

10. Bank Nifty opened at 36806 and made an intra day high of 37123 and a low of 35926 before closing at 36341 .The range of Nifty for the day was 1197 points.

11. US Dollar Index is at 100.877

12. led by IT, FMCG, except Energy all sectors closed in red

13. India VIX increased to 19.7750

14. US 10Y yields are at 2.897

15. Nifty futures saw short builup

16. Bank Nifty futures saw short builtup

17. US Brent oil eased to 107.4

18. USD / INR increased to 76.383


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