28th October' 2022 (Evening)

28th October' 2022 (Evening)   --   |  Written at 9.30 PM on 30th October' 2022   |

  • The last month closed on a high note. Starting weak, the month of October saw decent gains and closed almost at month highs. Market was still strong and on the first day of the current series also, the indices were relatively strong. 
  • #Nifty made 4 consecutive bullish candles on the daily chart. #BankNifty made a bearish candle after 3 bullish candles, however still made a higher high and a higher low.
  • Levels :
  • Both #Nifty and #BankNifty are in a range of 17650 to 17900 and 39825 to 41550 respectively. In this range #BankNifty saw some profit booking on Friday, while #Nifty is yet to test the upper level.
  • I expected #Nifty to test 17900 on Friday, however this did not happen. This may probably get breached in the opening tomorrow. Important to see is that will this trigger a profit booking and a rejection of the level or will the level hold.
  • On Friday, the first trading day of this series, #FII created shorts on Index futures and also sold a high number of call on Index. However, on the other hand, bought in cash for 1568Cr. 
  • The focus in cash seems to be on Index stocks. Market breadth on #Nifty was strong, while on the wider market the breadth was extremely weak. So, I doubt if the levels would sustain. The US futures though may hold a cue to sustenance of levels.
  • #DollarIndex has weakened for the past few days. It has eased to 100 levels from 114 earlier. It seems to be in sell on rise mode. The next key support is at 107.5 and will help provide important cues from there. The US yields are at 4.01 and seems stable there.
  • Options OI indicate a support at 17700 and 41000 for #Nifty and #BankNifty respectively.  On the higher side we need to watch the key levels as mentioned above.
  • India VIX has eased substantially and could well be a ey support indicator for #Nifty.
  • key economic events this week :
    • Mon - Chinese Mfg PMI and European CPI.
    • Tue - Caixin Mfg PMI, British Mfg PMI, US Mfg PMI
    • Wed - German Mfg PMI, US Non farm employment data, FOMC statement and interest rate decision
    • Thu - British composite PMI, services PMI, BOE interest rate decision, US jobless claims and non mfg PMI
    • Fri - British construction PMI, US Non farm payrolls
  • Wish you a happy trading week ahead...

1. FII were net Buyers for 1568 Cr today, while DII were sellers for 613 Cr. A net buying of 955 Cr from the institutional side.

2. FII's unwound 12 longs and created 5879 shorts on the index futures

3. On the option front FII  created 117133 short calls and   created 47492 short puts. They also bought 124626 long calls and  bought 76468 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17700 followed by 17500 and highest OI for CE is at 17800 followed by 18000. Highest Put writing was seen at 17700 and highest call writing was seen at 18200 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 41000 followed by 40000 and highest OI for CE is at 41500 followed by 42000. Highest Put writing was seen at 41000 and highest call writing was seen at 41500 levels. 

6. Asian markets closed mixed on Friday and Europe also closed mixed

7. US markets closed strong in green on Friday

8. The breadth of the market was weak on Friday

9. Nifty opened at 17756 and made an intra day high of 17838 and a low of 17723 before closing at 17786 .The range of Nifty for the day was 115 points.

10. Bank Nifty opened at 41236 and made an intra day high of 41482 and a low of 40839 before closing at 40990 .The range of Bank Nifty for the day was 643 points.

11. US Dollar Index is at 110.545

12. Energy were leaders in the markets, while Metals, IT and Pharma lost

13. India VIX is at  15.9225

14. US 10Y yields are at 4.010

15. Nifty futures saw short covering

16. Bank Nifty futures saw long unwinding

17. US Brent oil is at 94.22

18. USD / INR is at 82.269

 

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