10th May' 2022 (Evening)

10th May' 2022 (Evening)  --  | Written at 9.30 PM |

  • US indices lost ground again yesterday and our indices opened to a weak handover from US today. Though SGX was showing a negative opening till the actual opening of our markets, our indices opened marginally in red and then gained grounds to rise. While Bank Nifty retained a good part of this rise, Nifty actually gave it all away.
  • On a daily chart. Nifty's candle is almost exactly similar to yesterday, except the low was higher. Nifty's yesterdays high and todays high are almost same, though the low is much higher. Bank Nifty on the other hand made a bullish candle with a higher high and a higher low. This makes a chance of a bullish reversal on Bank Nifty.
  • HDFC Bank has show strength as well and this could turn around the Bank Nifty Index for a decent pull back if the cues support. I believe a decent risk can be taken on Bank Nifty, keeping in mind the levels below.
  • Now the levels :
  • In case, one wants to go long either on Bank Nifty, HDFC Bank or Maruti, I would suggest wait for a rise above the first resistance and then go long for second resistance as the target. This is general guidance, keeping in mind the levels above, positions can be taken as per individual strategies. I have my style for this.
  • Though I would not say it is weak, Nifty is still not that strong as the IT Index and Reliance are yet to pick up strength. As of now, I would suggest to go stock and sector specific, rather than a wider call on Nifty.
  • Nifty has to move out of the range it has been in for Monday and today. A break out from these two days range, on either side could give impetus to Nifty accordingly. (Watch the levels above)
  • FII today also sold 3960Cr today and DII bought 2958Cr from this. Their position on the Index futures was more of covering the shorts. These shorts covered by FII probably would have been on Bank Nifty. 
  • Market for this week has been over sold, so a pull back could definitely be on the cards. BankNifty if gives a breakout from todays high tomorrow, it could trigger a decent short covering.
  • Dollar Index has again started inching up, but is still below 104. US Yields are below 3 now and could keep the anxieties in control. Oil is down as well. However, we are not out of woods. Both Dow and Nasdaq are weak and if Dow breaks below 32000, we could see a lot of pain again. 
  • DII seem to be determined, however, their resilience may now get put to test.

1. FII were net sellers for 3960 Cr today, while DII were Buyers for 2958 Cr. A net selling of 1002 Cr from the institutional side.

2. FII's unwound 2944 longs and unwound 7228 shorts on the index futures

3. On the option front FII  created 23850 short calls and   created 23895 short puts. They also created 26759 long calls and  created 44141 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 16000 followed by 16200 and highest OI for CE is at 17000 followed by 16500. Highest Put writing was seen at 16200 and highest call writing was seen at 16400 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 34000 followed by 34500 and highest OI for CE is at 36000 followed by 35000. Highest Put writing was seen at 34500 and highest call writing was seen at 35200 levels. 

6. Asian markets closed mostly in red and Europe is trading in green

7. US markets trading flattish as of now

8. The breadth of the market was extremely weak today

9. Nifty opened at 16248 and made an intra day high of 16404 and a low of 16197 before closing at 16240 .The range of Nifty for the day was 207 points.

10. Bank Nifty opened at 34181 and made an intra day high of 34781 and a low of 34176 before closing at 34482 .The range of Bank Nifty for the day was 605 points.

11. US Dollar Index is at 103.895

12. BankNifty and FMCG made some gains today, else all indices closed in red

13. India VIX increased to 22.3025

14. US 10Y yields are at 2.952

15. Nifty futures saw short buildup

16. Bank Nifty futures saw long buildup

17. US Brent oil eased to 102.69

18. USD / INR eased to 77.318


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