29th July' 2022 (Evening)

29th July' 2022 (Evening)  --  |  Written on 31st July' 2022 at 9.00 PM   |

  • Markets closed the July series on strong note. #Nifty made a rise from 15758 to 16929 and #BankNifty made a rise from 33642 to 37378. Most of these gains were made in the second half of July.
  • The first trading of the current series saw further build up of positions on the long side.  With #Nifty making a gain of 228 points and #BankNifty made a gain of 113 points on the first day of Aug series.
  • So before we discuss on where do we see the markets going from here, let us look at the levels first...
  • So the way I see it, Nifty has a runway for a good move, This could be supported by #HDFCBank and #Reliance. The IT stocks are very close to their resistance now, if these are taken down, the #NiftyIT may also support #Nifty. I believe the IT stocks like #TCS and #Infy have multiple resistance levels from here and they would have to take hem all down to move up.
  • #FII bought in cash on Friday and have heavily cut down their shorts on #IndexFutures and have also created longs. They entered the #Aug series with long ratio of 57% and created longs on the first day and now stand at 61% longs.
  • With talks that the #FED may not be so aggressive in further rate hikes and talks that with US entering a technical correction, the markets feel that #FED will be easy on rates. Now this does not mean the rates start coming down.
  • So while, continuity of this pull back has to be watched further, a near term bottom was probably made in July. This could be 15150 for us on #Nifty in India. As of now there are some serious gaps on #NIfty and these need to be filled. So this gives me a feeling that we may retest 16500 at some point. In extreme short term though 17050 will be the support to watch.
  • The options OI indicate a wide trading range and support at 17000 and #Nifty and 37500 for #BankNifty.
  • #DollarIndex has eased quite a bit, however as mentioned earlier in one of my tweets, i would not consider it bearish till it goes below 103.42. So keep watching...
  • Global events this week :
    • Sun - Chinese PMI @49 was lower than expectations
    • Mon - Chinese, British, German and US Mfg PMI
    • Tue - US job openings
    • Wed - British and US composite PMI
    • Thu - RBI and British interest rate decision, 
    • Fri - US non farm payrolls and jobs data.
  • So wish you happy trading week ahead.....

1. FII were net buyers for 1046 Cr today, while DII were sellers for 0.91 Cr. A net  buying of 1045.09 Cr from the institutional side.

2. FII's created 10985 longs and created 935 shorts on the index futures

3. On the option front FII  created 92998 short calls and   created 87331 short puts. They also bought 103479 long calls and  bought 101320 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 16900 and highest OI for CE is at 17600 followed by 17500. Highest Put writing was seen at 17000 and highest call writing was seen at 17600 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 37000 followed by 37500 and highest OI for CE is at 38000 followed by 37500. Highest Put writing was seen at 37500 and highest call writing was seen at 37700 levels. 

6. Asian markets closed mixed and Europe closed in green on Friday.

7. US markets closed in green on Friday

8. The breadth of the market was extremely strong today

9. Nifty opened at 17079 and made an intra day high of 17172 and a low of 17018 before closing at 17158 .The range of Nifty for the day was 154 points.

10. Bank Nifty opened at 37717 and made an intra day high of 37754 and a low of 37221 before closing at 37491 .The range of Bank Nifty for the day was 533 points.

11. US Dollar Index is at 105.707

12. Almost all sectors closed in green on Friday

13. India VIX eased to 16.55

14. US 10Y yields are at 2.658

15. Nifty futures saw short covering

16. Bank Nifty futures saw short covering

17. US Brent oil increased to 110.01

18. USD / INR increased to 79.195

 

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