31st May' 2022 (Evening)

31st May' 2022 (Evening)  --  |  Written at 9.30 PM  |

  • #Nifty opened gap down today and then attempted taking off the highs made yesterday. However the indices were sold off at higher levels and closed slightly above todays lows. #Nifty made a Doji kind of a candle indicating some uncertainty ahead.
  • #BankNifty on the other hand opened lower and then got sold off further to close below yesterdays lows, making a bearish candle on the daily chart. Seems a bit weaker here.
  • Levels today :
  • Following the strong movements in the US markets on Friday, our indices made some strong moves on Monday and Tuesday, however, the sustenance has to be proven tomorrow, after the monthly closing in US today.
  • As of now the direction of #Nifty seems uncertain, though #BankNifty is clearly weak. As seen in the levels above #Nifty has to hold 16500 and #BankNifty has to hold 35375. If breached the market slides back into the previous range.
  • #FII today sold for 1000Cr and #DII bought for 1845Cr. So a net buying of 800Cr also could not hold the markets today. Most of the beating has probably been in #HDFC #HDFCBank #Reliance #TCS #Infy
  • #FII also unwound longs and created shorts on Index futures, they also sold more calls than puts. Over all their stance on Index futures was bearish. On the cash side I presume, the #FII encashed on the levels created by the #DII.
  • #FII on Index futures now are net positive with 51% long positions. The selling on the cash side though continues unabated. A slight easing of the Dollar Index #DXY had reduced the selling, however the #DXY has now inched higher to near 102. 
  • I had mentioned earlier that the easing of #DXY sustains only if it goes below 99.8. Till it goes above 102.5, this uncertainty would prevail. 99.8 and 102.5 are the support and resistance levels for it.
  • Oil is at 118 and keeps the axe hanging on our indices. Keep an eye on it.
  • As I am writing this blog, the US indices have gradually inched higher. Keep an eye on its closing today and the opening of US Futures tomorrow. The global cues will be the most important cues for us at the moment.
  • Probably, the only good news, our #GDP data released today, had was that capital investment was positive, raising hopes for growth in long term. However, trade deficit, Consumer spending continue to be subdued.

1. FII were net sellers for 1003 Cr today, while DII were Buyers for 1845 Cr. A net buying of 842 Cr from the institutional side.

2. FII's unwound 7629 longs and created 6484 shorts on the index futures

3. On the option front FII  created 29519 short calls and   created 12311 short puts. They also bought 13065 long calls and  bought 26426 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 16500 followed by 16300 and highest OI for CE is at 16700 followed by 16800. Highest Put writing was seen at 16450 and highest call writing was seen at 16700 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 35000 followed by 35500 and highest OI for CE is at 36000 followed by 36500. Highest Put writing was seen at 35000 and highest call writing was seen at 36000 levels. 

6. Asian markets closed mixed today and European markets trading flat to red

7. US markets trading in red as of now

8. The breadth of the market was extremely positive today

9. Nifty opened at 16578 and made an intra day high of 16690 and a low of 16521 before closing at 16584 .The range of Nifty for the day was 169 points.

10. Bank Nifty opened at 35615 and made an intra day high of 35881 and a low of 35288 before closing at 35487 .The range of Bank Nifty for the day was 593 points.

11. US Dollar Index is at 101.775

12. Except Metals and Auto most of the important sectors closed in red today

13. India VIX increased to 20.4775

14. US 10Y yields are at 2.866

15. Nifty futures saw long unwinding

16. Bank Nifty futures saw short buildup

17. US Brent oil increased to 118.26

18. USD / INR increased to 77.634


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