27th September' 2022 (Evening)

27th September' 2022 (Evening)  --  | Written at 6.00 AM on 28th Sep' 2022 |

  • Following some stability emerging in US on Mon, our Indices opened flattish on Tue, hoping for a recovery. However, after showing a flash of some green in the morning, the Indices could never capitalize on it through the day. While #Nifty kept its ground, #BankNifty actually gave way and slipped to a negative close.
  • Both #Nifty and #BankNifty made bearish candles on the daily chart. While #Nifty was closer to the range of Monday, #BankNifty clearly made a candle with a lower low and a lower high compared to Monday.
  • Levels :
  • The levels above indicate a support coming in at 16900 levels for #Nifty and 38150 for #BankNifty. Bulls yesterday defended their support at this level, While on #BankNifty this support may get tested soon. 
  • It is extremely important for these levels to hold as they may other vise they trigger a deeper correction to the levels of Jun lows. While all this may not happen in one go.
  • In US there were some signs emerging yesterday of some support coming in, but the selling resumed fairly quickly and the indices lost ground again. This led to #SGXNifty showing a sharp red opening today. 
  • The US futures indicate some stability again today, so we may not open that bad as the #SGXNifty was showing last night. I would watch the above levels in todays action, before any fresh change in view.
  • #FII continue to sell in cash, They sold for 2800Cr again and created a huge number of fresh shorts on Index futures. Their positions on the options side were more or less same on call and put side. Though on Stock futures, they created longs and unwound a lot of shorts.
  • The options OI indicate support at 16900 and 38000 for #Nifty and #BankNIfty respectively, this is actually similar to the charts as well. Let us see today, if these levels are defended.
  • Dollar Index is at 114 plus now and is extremely strong causing ruckus in the global currency markets. With all major currencies globally falling, INR has been  relatively stable. Though it is also now almost at 81.7 to a Dollar. Chances being that we may hit 82 to a Dollar.
  • The IT sector is gaining strength probably from currency. The INR depreciation may help the IT profitability. Though they still have to navigate to maintain their topline. With a steep correction from ATH, it actually gives an opportunity for some value buying. I have also put in some cash investments in the IT sector. 
  • #Maruti was going strong and some sharp move was expected, however, looks like the global selling has taken a toll on it as well. A sharp selling was seen from its multi year high lately. A good stock though and is a good buy now, till it holds 8560. 
  • Oil continues to be at 85 USD and actually helps our markets. Though it continues to indicate growth concerns. 
  • RBI MPC will declare its interest rate decision this week. Keep and eye on that on Friday. Before that the monthly closing on Thu will keep the markets volatile.

1. FII were net selling for 2823 Cr today, while DII were buyers for 3504 Cr. A net Buying of 681 Cr from the institutional side.

2. FII's created 91 longs and created 11097 shorts on the index futures

3. On the option front FII  created 11624 short calls and   created 17077 short puts. They also bought 48603 long calls and  bought 44501 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 16500 followed by 17000 and highest OI for CE is at 17500 followed by 17100. Highest Put writing was seen at 16900 and highest call writing was seen at 17100 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 38000 followed by 38500 and highest OI for CE is at 41000 followed by 40500. Highest Put writing was seen at 38000 and highest call writing was seen at 38500 levels. 

6. Asian markets closed mixed today, Europe closed in green

7. US markets trading in red as of now

8. The breadth of the market was positive today

9. Nifty opened at 17110 and made an intra day high of 17176 and a low of 16942 before closing at 17007 .The range of Nifty for the day was 234 points.

10. Bank Nifty opened at 38811 and made an intra day high of 39050 and a low of 38184 before closing at 38359 .The range of Bank Nifty for the day was 866 points.

11. US Dollar Index is at 114.305

12. Pharma, FMCG and IT made some gains today, while most of the other sectors closed in red

13. India VIX is at  21.5675

14. US 10Y yields are at 3.968

15. Nifty futures saw long buildup

16. Bank Nifty futures saw short buildup

17. US Brent oil is at 84.98

18. USD / INR is at 81.763


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