24th Aug' 2022 (Evening)

24th Aug' 2022 (Evening)  --  |  Written at 12.30 AM  |

  • As mentioned yesterday, the indices opened gap down. However, from then a sharp recovery was seen, almost up to the resistances I mentioned yesterday. Some intraday profit booking was seen from this point and then this dip was bought and the Indices closed at the high end of the trading range for the day.
  • While #Nifty closed at the first high made, #BankNifty closed took down the day high made and closed above the first high. So, while both the Indices mad a bullish candle for the day, they actually made a daily candle with a lower high and a lower low as compared with yesterday.
  • The buying interest seen at the opening lows today indicate a strong demand at that levels. Also the #FII ended up buying today. So let us look at the levels first
  • Looking closely at the levels, after the recovery today, the spot price is now close to their first resistance for both #Nifty and #BankNifty. Important to see is that if they are taken down or not. While I expect them to be taken down tomorrow, a bit of this depends on the US closing today and the opening of US futures tomorrow.
  • #FII action today in cash was bullish, they bought for 563 Cr and the position on the Index futures was more or less neutral. On the options side also their stance is kind of neutral. So some range bound action is what they expect.
  • The options OI indicate a trading range of 17400 - 18000 on #Nifty and 38500 - 39500 for #BankNifty as it is seen now. Month end volatility may be seen and also the global cues can add to this volatility. 
  • The India VIX has not eased much from yesterday, so this recovery today may or may not sustain. Tomorrow's price action could give a clue to this. Till the Indices are below their first resistance above, this risk will remain.
  • Dollar Index has eased slightly, however, the US yields are stable. The Brent oil has inched up, so on this side the cues are not very encouraging.
  • On the economic front the US home sales data was poor, the German and British PMI was also down (Except on the services side). This could be interpreted by the market as good from the perspective that this could lead to the #FED taking a bit of a lenient stance on rate rise. Let us see, if this supports.
  • Technically, the markets are at a good support level. I would be hopeful to see this level holding up. But then, as they say "Bhav Bhagwaan hai". Lets see...
  • The IT sector did not perform today and was the only sector to take a dip. It is now at its support. With the kind of weightage it has on #Nifty, If this picks up tomorrow, could actually support.

1. FII were net buyers for 563 Cr today, while DII were sellers for 215 Cr. A net buying of 348 Cr from the institutional side.

2. FII's unwound 257 longs and created 1138 shorts on the index futures

3. On the option front FII  created 15862 short calls and   created 20312 short puts. They also bought 41994 long calls and  bought 63111 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 17400 and highest call writing was seen at No reasonable level levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 38500 followed by 38000 and highest OI for CE is at 40000 followed by 39500. Highest Put writing was seen at 38600 and highest call writing was seen at No reasonable levels levels. 

6. Asian markets closed mostly in red and Europe closed in red

7. US markets trading mildly in red as of now

8. The breadth of the market was strong today

9. Nifty opened at 17357 and made an intra day high of 17625 and a low of 17345 before closing at 17577 .The range of Nifty for the day was 280 points.

10. Bank Nifty opened at 37955 and made an intra day high of 38869 and a low of 37950 before closing at 38697 .The range of Bank Nifty for the day was 919 points.

11. US Dollar Index is at 108.498

12. Led by Auto and PSUBanks, except IT almost all sectors closed in green

13. India VIX increased to 19.0500

14. US 10Y yields are at 3.039

15. Nifty futures saw long buildup

16. Bank Nifty futures saw short covering

17. US Brent oil is at 100.13

18. USD / INR is at 79.850


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