22nd Aug' 2022 (Evening)

22nd Aug' 2022 (Evening)  --  |  Written at 11.00 PM  | 

  • As expected and mentioned in my notes yesterday, the Indices opened gap down and then continued to slide, closing at the lower end of today's trading range. #Nifty and #BankNIfty both made strong bearish candles on a daily chart.
  • The weak global cues this morning and through the day, did not give any reason to our markets to take a breather. A small support picked up around noon was sold off and this levels actually becomes our first resistance for tomorrow.
  • Levels first :
  • So looking at the levels now, #Nifty is looking at 17425 as the first level and could actually look for a deeper correction if this is taken down. On the flip side we may see resistance at 17600 if it tries to go up. #BankNifty is looking at 38150 and 38500 as the levels (with a similar commentary as #Nifty) from here.
  • Looking at the way Asian markets closed today, Europe and US is trading as of now, we may see another gap down opening tomorrow. Though the gap may not be as deep as today. Need to look at the US closing today and opening of its future tomorrow.
  • I expect a bit of consolidation at this level, hence the Indices may play in a range. Though the range could be wider. Being the last week and a correction from a swing high, may actually pose some volatility again. Keep an eye on the levels above to get a sense of direction in short term.
  • For mid term to long term investors, the correction is a good time to enter. Choose ones entry point as per the investment style.
  • #FII sold in cash today and unwound a huge number of shorts on Index futures. They also unwound a good number of longs on Index futures. This indicates a bit of capital squeezed out of our markets today. They also are playing a range at the moment. 
  • The #DOllarIndex is close to 109 now and could well put global equities in pressure. The 10 year Yields in US are also above 3 now. #FED is doing its job well to keep the equity folks under pressure.
  • The options OI indicate a weak #Nifty and a mildly better #BankNIfty. #BankNifty may see a deeper trouble below 38000.
  • So lets watch an interesting day tomorrow.....
1. FII were net sellers for 453 Cr today, while DII were sellers for 85 Cr. A net selling of 538 Cr from the institutional side.
2. FII's unwound 6342 longs and unwound 11766 shorts on the index futures
3. On the option front FII  created 39169 short calls and   created 21090 short puts. They also bought 43694 long calls and  bought 48399 long Puts.
4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 17500 and highest OI for CE is at 18000 followed by 17600. Highest Put writing was seen at No reasonable level and highest call writing was seen at 17600 levels.
5. For the next week expiry, Bank Nifty has the highest OI for PE at 38500 followed by 37000 and highest OI for CE is at 39500 followed by 38500. Highest Put writing was seen at 38300 and highest call writing was seen at 38500 levels. 
6. Asian markets closed mostly in red and Europe trading in red as of now
7. US markets trading in red as of now
8. The breadth of the market was extremely weak today
9. Nifty opened at 17682 and made an intra day high of 17690 and a low of 17467 before closing at 17490 .The range of Nifty for the day was 223 points.
10. Bank Nifty opened at 38693 and made an intra day high of 38732 and a low of 38247 before closing at 38297 .The range of Bank Nifty for the day was 485 points.
11. US Dollar Index is at 108.980
12. Led by Metals and Realty, almost all sectors closed in red today
13. India VIX increased to 19.0375
14. US 10Y yields are at 3.037
15. Nifty futures saw short buildup
16. Bank Nifty futures saw long unwinding
17. US Brent oil eased to 95.53
18. USD / INR is at 79.876

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