16th Aug' 2022 (Evening)

16th Aug' 2022 (Evening)  --  | Written at 6.00 AM on 17th Aug' 2022  |

  • The highlight of yesterdays trading was that the markets did not reject the price from the levels where it opened. While there was congestion and both #Nifty and #BankNIfty saw some resistance, they got support and held the levels. 
  • While #Nifty made a bullish candle on the daily chart, #BankNIfty made a small bearish candle with a decent upper and lower shadow indicating a small range of trading. Important to see which side does it breakout from yesterdays range.
  • Levels :
  • The highlight for some time has been the #FII buying and their return into the cash market. Markets enjoyed this support yesterday as well, with #FII buying 1376Cr of equity and the #DII liquidating a small amount.
  • The broader Indices also saw strength with the market width in the #Nifty500 also improving yesterday. 
  • The indices however have not shown a breakout yet. Most of the important stocks in #BankNIfty are in the resistance zone and #NiftyIT has not shown strength yet. It would be important to see whether #BankNIfty gives up or #NIftyIt picks up. This would decide the next course of action.
  • As of now the levels remain as in the table.
  • The options OI are indicating a tough off war between the bulls and bears with both put writing and call writing at levels intruding each others zone. However, support seems to exist on 17800 for #Nifty and 39200 for #BankNifty and the resistance also at almost same levels.
  • Seeing above, caution is advised. As mentioned yesterday i would be cautious with a bearish bias. Though a breakout from the levels cannot be ruled out. However, a confirmed breakout would be a safe than to pick a long trade on anticipation of a breakout.
  • A cool off would be healthier for the market though.
  • #DollarIndex and yields continue to be in the range. Oil has eased a bit though. 
  • Keep eye on #NiftyIT and #BankNIfty for a cue on todays action. The global cues have been supportive so far, however a bad news from that side could be sensitive for us due to the positioning we are carrying as of now.

1. FII were net buyers for 1376 Cr today, while DII were sellers for 136 Cr. A net  buying of 1240 Cr from the institutional side.

2. FII's created 3847 longs and created 1290 shorts on the index futures

3. On the option front FII  created 27569 short calls and   created 37896 short puts. They also bought 21639 long calls and  bought 42664 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17500 followed by 17600 and highest OI for CE is at 17700 followed by 17500. Highest Put writing was seen at 17800 and highest call writing was seen at 17800 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 39000 followed by 38000 and highest OI for CE is at 39500 followed by 40000. Highest Put writing was seen at 39200 and highest call writing was seen at 39400 levels. 

6. Asian markets closed mixed and Europe closed in green yesterday

7. US markets closed mixed with Down in green and Nasdaq in red

8. The breadth of the market was positive yesterday

9. Nifty opened at 17797 and made an intra day high of 17839 and a low of 17764 before closing at 17825 .The range of Nifty for the day was 75 points.

10. Bank Nifty opened at 39284 and made an intra day high of 39444 and a low of 39119 before closing at 39239 .The range of Bank Nifty for the day was 325 points.

11. US Dollar Index is at 106.398

12. Led by Auto, Realty and FMCG most of the important sectors closed in green

13. India VIX increased to 17.6850

14. US 10Y yields are at 2.820

15. Nifty futures saw long buildup

16. Bank Nifty futures saw short covering

17. US Brent oil eased to 92.69

18. USD / INR is at 79.146


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