26th April' 2022 (Evening)

26th April' 2022 (Evening)  --  | Written at 11.00 PM |

  • With US markets making a swift pull back yesterday, Our markets opened to strong global cues. After opening gap up and then consolidating there for the day, Indices made a smart move in the last half hour and attempted a breakout, closing at the day highs.
  • Amongst the global ruckus going on, whether this attempt will sustain, is difficult to comment. In general, I feel our markets are strong and in long term, I have absolutely no concerns.
  • Let us look at the levels first :


  • Now observing closely at the levels above, we see that the closing of both Nifty and Bank Nifty has been above the yesterday's resistance and the supports at lower time frames have also inched upwards. This is obvious if we study the candles made on charts of different time frames.
  • So, generally the markets are strong, concern is a rising Dollar Index and volatility driven from US specifically. S&P VIX is now above 31 and poses a strong risk to global equities again. Dollar Index is now above 102. Now this is really concerning for global equity. Just for reference, it was at 103.96 in March' 2020. Now this definitely does not mean that equities will fall like March'2020, but it would definitely put tremendous pressure on equities.
  • Indian markets have already seen a huge flight of FII capital and the DII have been resilient to take this hit. So while the rise in Dollar Index poses high risk of FII capital flight, lot of it should have priced in already.
  • FII today sold in cash for 1174Cr and DII bought more than this. A net buying of 469Cr was seen from the institutional side. FII bought in Index futures, however they sold more calls than puts. So net in net their stance is bearish today, though within a range.
  • Options OI now indicate a range of 17000 to 17500 on Nifty and 36000 to 37000 on Bank Nifty.
  • Financials may pose strong owing to good result expectations from Bajaj Fin and a disappointment there could spoil the game.
  • Globally the Markets are extremely volatile. Both Dow and Nasdaq are trading deep in red as of now. Nasdaq actually is deeper. Since the markets are news based, watch closely on the US closing today and the opening of futures tomorrow. This would set the tone for our markets.
  • The way i see it now, We may open gap down tomorrow. However, todays lows and highs would be the trend setters. Watch these levels in early trade tomorrow. Refer the levels above for these levels. Breach of 17050 on lower side and 17325 on the higher side, may push Nifty wider on the same side.

1. FII were net sellers for 1174 Cr today, while DII were Buyers for 1643 Cr. A net buying of 469 Cr from the institutional side.

2. FII's created 4490 longs and created 1374 shorts on the index futures

3. On the option front FII  created 32199 short calls and   unwound 9728 short puts. They also created 75315 long calls and  created 51536 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 17200. Highest Put writing was seen at 17200 and highest call writing was seen at 17550 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 36500 followed by 36000 and highest OI for CE is at 36500 followed by 37000. Highest Put writing was seen at 36500 and highest call writing was seen at 36500 levels. 

6. Asian markets closed mixed and Europe trading mixed as of now

7. US markets trading in red as of now

8. The breadth of the market was extremely strong today

9. Nifty opened at 17121 and made an intra day high of 17223 and a low of 17064 before closing at 17200 .The range of Nifty for the day was 159 points.

10. Bank Nifty opened at 36515 and made an intra day high of 36604 and a low of 36265 before closing at 36404 .The range of Nifty for the day was 339 points.

11. US Dollar Index is at 102.198

12. led by Realty, Auto and Energy stocks, all sectors closed in green 

13. India VIX eased to 19.1875

14. US 10Y yields are at 2.768

15. Nifty futures saw long buildup

16. Bank Nifty futures saw short covering

17. US Brent oil eased to 105.27

18. USD / INR increased to 76.674


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