22nd April' 2022 (Evening)

22nd April' 2022 (Evening)   --   | Written on 24th April' 2022 at 10.00 PM |

  • Interesting week and day it was. Last week Nifty made a Doji candle, indicating some uncertainty of direction ahead. Bank Nifty on the other hand made a clear bearish candle on the weekly chart.
  • On the daily chart though, both Nifty and Bank Nifty made bearish candles. The two time frame indicate a bearish trend with some support emerging at 16800 on Nifty and 35925 on Bank Nifty. 
  • Now on the other hand US markets closed absurdly low. Dow Jones lost 981 points (2.81%) and Nasdaq lost 335 points (2.55%).  Both Nasdaq and Dow are now standing at very important supports. A breach of these levels could trigger much bigger pain for the global markets.
  • Let us look at the Levels of our markets, before discussing further :

  • Concerns originating from US on rate rise and a more hawkish approach by FED has been giving jitters to the markets globally. On Friday, US markets lost heavily and the support levels on Dow and Nasdaq as mentioned above, if breached, could give much higher pain the markets globally. 
  • Other than this, the Russia-Ukraine war uncertainty, Inflation, and withdrawal of liquidity, have been weighing heavily as well.
  • FII on Friday sold for 2461Cr and also unwound some longs on Index futures. Created fresh shorts on Index and took a bearish stance on the options front as well. So, in nutshell the FII stance is bearish.
  • Options OI indicate weakness ahead as well. There was hardly any put writing and the call writing was pretty heavy. OI as of now indicate support at 17000 on Nifty and 35000 on Bank Nifty.
  • Dollar Index is above 101 and the US 10 Y yields were trading above 2.9 and crossed above 3 as well. This is now inching higher again to a new level. Oil is stable at 106 and the INR at 76.46 level.
  • So, I feel we would see a gap down opening tomorrow and will have to see if the major support at 16800 is held or not. We may start preparing to see 16200 levels, if this is breached. 
  • As of now a strong support at 15650 and 35000 on Nifty and Bank Nifty is intact. 
  • Watch for the following important events this week. Mon - German Business Climate Index. Tue - Consumer confidence and Home sales from US. Wed - Crude Inventories from US and ECP president commentary. Thu - Monetary policy from Japan, GDP and jobless claims from US.  Fri - Japan closed, Chinese and German GDP. Sat - Chinese Mfg PMI
  • Important results this week - HUL, Reliance, Wipro and Ultratech
  • Wish you happy trading week ahead.

1. FII were net sellers for 2461 Cr today, while DII were Buyers for 1602 Cr. A net selling of 859 Cr from the institutional side.

2. FII's unwound 5763 longs and created 4848 shorts on the index futures

3. On the option front FII  created 75566 short calls and   created 25503 short puts. They also created 56429 long calls and  created 59501 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 17200 and highest OI for CE is at 17500 followed by 17400. Highest Put writing was seen at 17000 and highest call writing was seen at 17400 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 35000 and highest call writing was seen at 36500 levels. 

6. Asian markets closed mixed and Europe closed in deep red

7. US markets closed deep in red

8. The breadth of the market was extremely weak today

9. Nifty opened at 17242 and made an intra day high of 17315 and a low of 17149 before closing at 17171 .The range of Nifty for the day was 166 points.

10. Bank Nifty opened at 36514 and made an intra day high of 36578 and a low of 35951 before closing at 36044 .The range of Nifty for the day was 627 points.

11. US Dollar Index is at 101.130

12. led by Banking, Metals and Pharma, all sctors closed in red on Friday

13. India VIX increased to 18.3525

14. US 10Y yields are at 2.905

15. Nifty futures saw short builup

16. Bank Nifty futures saw short builtup

17. US Brent oil eased to 106.2

18. USD / INR increased to 76.464


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