18th July' 2022 (Evening)

18th July' 2022 (Evening)   --  | Written at 9.00 PM  |

  • It was a good day for the markets today. Boosted by the move in US markets on Friday and taking support from the strong Global cues this morning, #Nifty gave a strong performance. Same goes for #BankNifty.
  • As mentioned yesterday, #Nifty opened at 16151 and this was the level I mentioned yesterday to watch. Once held, #Nifty was strong and made strong moves to close marginally above its resistance of 16275, that i mentioned yesterday.
  • #BankNifty also performed exactly as expected and mentioned yesterday in the comments. We may now be looking at 35500 level. However, let us look at the levels before we discuss further.
  • Now with #Nifty having closed above 16275, we may be eyeing 16325 and then 16500 if it is able to take down 16325. Nifty will need #FII support for this to happen. Some sectors that need to support for this are #NiftyIT and #BankNifty. 
  • As of now I see a resistance at 35500 for #BankNifty. #NiftyFMCG saw some resistance today, #Reliance is another booster to watch. #HDFCBank underperformed today and #ICICIBank is extremely close to its resistance, so i may expect #BankNifty to cool down a bit and see some sectoral rotation to boost IT a bit.
  • Unless #NiftyIT, #BankNifty and #Reliance do not perform together, a strong sustainable up move is difficult. So lets see, how does this pan out tomorrow. 
  • #BankNifty analysis is partially covered above. I see some resistance at 35500, so lets watch.
  • #FII bought in cash today and #DII also complimented on it. This led to some short covering and the #FII had to unwound a good number of short positions on Index Futures. Though they created some longs on Stock Futures, I do not see any bullishness in their texture.
  • The Options OI indicate a trading range of 16000 till 16500 for #Nifty and 35000 to 35500 for #BankNifty. Huge OI has built up at 16000 and 35000 for #Nifty and #BankNifty respectively.
  • #CrudeOil has inched up again and the #INR is still weak. In the bond markets the yields in 2 years has inched above 10 Y and this probably indicates the rise in yields may not run for long. For cash investors i feel this continues to be a good time and keep buying the dips.

1. FII were net buyers for 156 Cr today, while DII were buyers for 844 Cr. A net  buying of 1000 Cr from the institutional side.

2. FII's unwound 369 longs and unwound 17292 shorts on the index futures

3. On the option front FII  created 8891 short calls and   created 53685 short puts. They also bought 72699 long calls and  bought 7191 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 16600 followed by 16500. Highest Put writing was seen at 16200 and highest call writing was seen at 16300-16600 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 35000 followed by 34500 and highest OI for CE is at 35500 followed by 36000. Highest Put writing was seen at 35000 and highest call writing was seen at 35500 levels. 

6. Asian markets closed in green  and Europe trading in green

7. US markets trading in green as of now

8. The breadth of the market was extremely strong today

9. Nifty opened at 16151 and made an intra day high of 16287 and a low of 16142 before closing at 16278 .The range of Nifty for the day was 145 points.

10. Bank Nifty opened at 34841 and made an intra day high of 35382 and a low of 34804 before closing at 35358 .The range of Bank Nifty for the day was 578 points.

11. US Dollar Index is at 106.793

12. IT and Metals and Nifty Bank led the moves today. Pharma and FMCG were on the losing side.

13. India VIX eased to 17.160

14. US 10Y yields are at 2.999

15. Nifty futures saw short covering

16. Bank Nifty futures saw long buildup

17. US Brent oil increased to 105.62

18. USD / INR increased to 79.970


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