24th May' 2022 (Evening)

24th May' 2022 (Evening) --  |  Written on 25th May' 2022 at 6.00 AM  |

• Indices yesterday opened flattish with a negative bias. While Nifty sold off through the day to make a bearish daily candle, Bank Nifty actually closed managed to close in green though a small number.
• 16400 continues to prove a strong resistance for Nifty. It actually breached its first support yesterday and shifted it a bit lower. Seems weak on charts as of now.
• Let us look a the levels :
• Looking at the above levels, Nifty has to hold 16075 to avoid a deeper sell of again to 15800 levels and Bank Nifty has to hold 34100, else a deeper sell off to 33000 levels is possible again. This move if happens may weaken Nifty as well.
• Individually HDFC Bank has been holding the fall on Bank Nifty. Question is how long?
• Interestingly if we look at the charts, the candles have been kind of repeating themselves. The last two candles on the weekly chart for Nifty as exactly similar and the last two candles on the daily chart for Bank Nifty have been similar. A very rare phenomenon.
• Yesterday, the US markets opened in red but gradually recovered. Though Nasdaq was still weak and closed in red, Dow managed to recover and close in mild green. I do not think this helps us in anyway as the candles are kind of detached with this daily swings on lower time frames.
• Our setup looks weak, though a large fall maybe held up for expiry reasons. Bank Nifty has shown some strength in very short time frames. Lets see...
• FII again created shorts on Index futures. Thought their position on the option side is neutral and have been selling in cash.
• Global cues and levels seem to be important. Large trending moves have been constrained lately, making the markets difficult to trade. So be careful. 
• The Dollar Index has lately come down in a convincing way. It is below 102 now and the US yields have also inched lower. Whether this helps us, is confusing. As at the same time the S&P VIX has not come down and in our case India VIX went up yesterday.
• All in all interesting and to be honest confusing setup in short term.

1. FII were net sellers for 2393 Cr today, while DII were Buyers for 1948 Cr. A net selling of 445 Cr from the institutional side.

2. FII's unwound 3331 longs and created 5633 shorts on the index futures

3. On the option front FII  created 47103 short calls and   created 56640 short puts. They also created 74065 long calls and  created 48255 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 16000 followed by 15500 and highest OI for CE is at 16500 followed by 16400. Highest Put writing was seen at 15800 and highest call writing was seen at 16500 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 34000 followed by 33000 and highest OI for CE is at 35000 followed by 34500. Highest Put writing was seen at 34000 and highest call writing was seen at 34500 levels. 

6. Asian markets closed mostly in red and europe closed in red

7. US markets closed mixed on Tuesday with Nasdaq in red and Dow flat

8. The breadth of the market was extremely weak today

9. Nifty opened at 16225 and made an intra day high of 16262 and a low of 16078 before closing at 16125 .The range of Nifty for the day was 184 points.

10. Bank Nifty opened at 34223 and made an intra day high of 34586 and a low of 34115 before closing at 34290 .The range of Bank Nifty for the day was 471 points.

11. US Dollar Index is at 101.825

12. Bank Nifty and Auto made some gains, while Pharma, Metals, Energy and FMCG were losers

13. India VIX increased to 25.635

14. US 10Y yields are at 2.761

15. Nifty futures saw short  buildup

16. Bank Nifty futures saw short covering

17. US Brent oil eased to 111.09

18. USD / INR increased to 77.479