11th October' 2022 (Evening)

11th October' 2022 (Evening)  --  |  Written on 11th October' 2022 at 11.00 PM  |

  • Markets today opened flattish with #Nifty in green and #BankNifty in red, made some gains and then eventually suffered a sharp sell off towards the end of the day. #Nifty closed 1.5% in red and #BankNifty closed half a percent in red.
  •  Both #Nifty and #BankNifty made strong bearish candles on the daily chart. With #Nifty actually making a bearish engulfing candle. Let us now look at levels :
  • As mentioned yesterday, the tussle between #FII and #DII is extremely strong. A strong selling by #FII is been bought by the #DII. This tussle is actually leading to ferocious movement of Indices in a range. Indices today again inched lower towards the lower end of this range. 
  • #FII sold for 4600 Cr today and #DII bought for 2430Cr. I suspect this selling came towards the end of the day and probably also aggravated due to the Bank of England statement on UK financial stability.
  • A buying support did not come in at the first support levels of 17050 and the Index sinked deeper towards its next support. It now looks for support at 16850. I hope this support should come in for now, though a deeper cut cannot be ruled out.
  • #FII also shorted the Index futures again and also covered the puts written by them. They however did not buy puts, this could be a sign that a deeper cut is not expected and we may see a recovery from this level. I would keep my hopes on a recovery.
  • The Dollar Index has eased a bit and no substantial change is seen in the US Yields. So they do not much influence the markets as of yet.
  • The rupee eased as well and this could be a positive for the Indian equity. Globally we remain a sweet spot with IMF forecasting India as the fastest growing economy globally. Though valuation vise we may be costlier than other economies, we may still be attractive.
  • The options OI indicate trouble with heavy call writing today. We may still probably see a bounce back till 17200 and 39000 on #Nifty and #BankNIfty respectively.
  • US markets are trading mixed with #DowJones in green and #Nasdaq mildly in red. If the closing in US remains strong, we may see a gap up opening tomorrow. keep an eye on the US close today and US futures tomorrow.

1. FII were net selling for 4612 Cr today, while DII were buyers for 2430 Cr. A net selling of 2182 Cr from the institutional side.

2. FII's unwound 5520 longs and created 5366 shorts on the index futures

3. On the option front FII  created 94838 short calls and   unwound 12390 short puts. They also bought 65892 long calls and  bought 3317 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 16800 and highest OI for CE is at 17200 followed by 17500. Highest Put writing was seen at 16600 and highest call writing was seen at 17200 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 39000 followed by 40000. Highest Put writing was seen at no reasonable level and highest call writing was seen at 39000 levels. 

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

7. US markets trading mixed as of now

8. The breadth of the market was extremely negative today

9. Nifty opened at 17256 and made an intra day high of 17261 and a low of 16950 before closing at 16983 .The range of Nifty for the day was 311 points.

10. Bank Nifty opened at 39058 and made an intra day high of 39174 and a low of 38622 before closing at 38712 .The range of Bank Nifty for the day was 552 points.

11. US Dollar Index is at 112.425

12. Led by metals and realty, almost sectors closed in red

13. India VIX is at  20.49

14. US 10Y yields are at 3.888

15. Nifty futures saw short buildup

16. Bank Nifty futures saw long unwinding

17. US Brent oil is at 94.56

18. USD / INR is at 82.224


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