10th October' 2022 (Evening)

10th October' 2022 (Evening)  --  | Written on 11th October' 2022 at 6.00 AM |

  • Following a sharp selling in US on Friday, our indices opened gap down yesterday. A gradual recovery was seen through the day, and the indices saw a close near the day highs.
  • Both #Nifty and #BankNIfty made strong bullish candles through the day, with small upper and lower shadows.
  • The levels indicated are as below :
  • As seen through past some days, a strong #DII support comes in at lower levels of around16900 or so. Yesterday also the lower levels (17065) saw a strong buying from the #DII and the indices recovered from there.
  • The #FII continue to sell in cash. The selling from their side was again 2000Cr plus yesterday. The #DII bough almost all of this. The determination from the #DII side is high, to protect the bottom. The larger question that looms is how much more liquidity still remains on the institutional side.
  • While the #DOllarIndex eased a bit over the past few days, it saw some more strength over the last two days. This led to a sharp weakening of the INR. This probably supported the IT stocks. The IT stocks have lost more than 35% of the values from their highs and are heavily discounted at the moment.
  • IT stocks only need a visibility of business stability going forward. This would be sufficient to make them perform. Fearing a recession in US and Europe, these companies have to work hard for their top line itself. With #TCS results and a positive management commentary would be sufficient to give some momentum to these stocks.
  • The Banking stocks saw a huge momentum over the past days and have now taken a pause. The results season ahead will have to provide a strong reason for a further push.
  • I believe the markets are here to remain in a range, until a fresh reason evolves for them to breakout of this. This range currently seems to be 16750 to 17450 for #Nifty and 37500 to 39500 for #BankNifty. A sharp move on either side can happen only one this range is broken.
  • The Options OI indicate a support at 17100 and a resistance at 17500 for #Nifty and a support at 38700 and resistance at 39500 for #BankNifty. A wide trading range is indicated for #BankNIfty.
  • Oil has globally again been trading around 97 Dollars and may remain so over there. The US Yields are also stable at 3.88 or so thereabout. 
  • I personally feel that the markets would remain volatile, though a wide trading range is anticipated. If in cash, buying every dip could be a good strategy. If trading derivatives, be light in positions, need to be careful and remain hedged.
  • Keep watching the #IT stocks, anticipate action there. 

1. FII were net selling for 2139 Cr today, while DII were buyers for 2137 Cr. A net selling of 2 Cr from the institutional side.

2. FII's unwound 1318 longs and created 14122 shorts on the index futures

3. On the option front FII  created 83398 short calls and   created 73786 short puts. They also bought 114296 long calls and  bought 145923 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 17100 and highest OI for CE is at 18000 followed by 17500. Highest Put writing was seen at 17100 and highest call writing was seen at 17100 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 38500 followed by 39000 and highest OI for CE is at 40000 followed by 39500. Highest Put writing was seen at 38700 and highest call writing was seen at 39500 levels. 

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

7. US markets trading in red as of now

8. The breadth of the market was extremely negative today

9. Nifty opened at 17094 and made an intra day high of 17280 and a low of 17064 before closing at 17241 .The range of Nifty for the day was 216 points.

10. Bank Nifty opened at 38641 and made an intra day high of 39315 and a low of 38518 before closing at 39093 .The range of Bank Nifty for the day was 797 points.

11. US Dollar Index is at 113.183

12. Led by FMCG, other than IT, almost all sectors closed in red

13. India VIX is at  19.6225

14. US 10Y yields are at 3.888

15. Nifty futures saw short buildup

16. Bank Nifty futures saw short buildup

17. US Brent oil is at 97.08

18. USD / INR is at 82.385


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