27th January' 2023 (Evening)

27th January' 2023 (Evening)  --  | Written at 1.30 PM on 29th January' 2023  |

• #Nifty and many other stocks, specially the banking stocks got severe beating on Friday. The #HindenburgReport created havoc on the #Adani shares. The banking stocks followed as there were concerns related to high leverage of the #Adani group and exposure these banks have towards them.
• #BankNifty was the first one to get screwed. #SBIN and #ICICIBank were the ones that got hit badly. While #HDFCBank, #KotakBank also lost. 
• #Nifty made a strong bearish candle on the daily chart. This led to it breaching some important levels on #Nifty. 17725 was one such level and in fact at one point, #Nifty also breached 17500. 
• While #Nifty did make some recovery in the last hour or so, i feel it is not out of clouds. 
• I somehow have a hunch that #Nifty lost some important levels due to #BankNifty (Of course) and valuations. A reason was being sought by the Indices to correct a bit. 
• Due to the reasons above, I feel, if the Fridays lows are held, we may see a sharp recovery, else a deeper correction may be in the offing. We may be looking at 16800 as a level in that case.
• My view on important levels for both #Nifty and #BankNifty, along with many other stocks have been tweeted separately. 
• Now looking at the global markets, US is bullish, Europe is fine and Asia was also fine on Friday. So it is just our markets, the ones,  that have seen a trigger to correct.
• #FII on Friday sold heavily. Probably in the #Adani stocks. While the #DII did buy strong, it ws not enough to hold the ruckus.
• #DollarIndex, #USD/INR, #Oil, #bond yields are all well behaved so far for the week. So really do not pick up a cue there.
• The options OI show a strong skew towards call writing, though a good amount of put writing was also seen. However, the put writing was at a much lower level and that is a concern. On #Nifty largest put writing was at 17000 and on #BankNifty this level was 39500. Since, this was the start of a new series, i feel the put writers were kind of extra risk averse. 
• Lets see tomorrow, do we see some recovery, or we see a followup on the selling seen on Friday.
• Since, i have started writing after a gap. Would hold for now, till I get a better hang of the action at our Dalal street.
• 
  

1. FII were net sellers for 5977 Cr today, while DII were buyers for 4252 Cr. A net selling of 1725 Cr from the institutional side.

2. FII's unwound 7790 longs and created 26769 shorts on the index futures

3. On the option front FII  created 206730 short calls and   created 134742 short puts. They also bought 206075 long calls and  bought 191499 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 17000 followed by 18000 and highest OI for CE is at 18000 followed by 18200. Highest Put writing was seen at 17000 and highest call writing was seen at 18000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 42000 followed by 39000 and highest OI for CE is at 42000 followed by 42500. Highest Put writing was seen at 39500 and highest call writing was seen at 41000-43000 levels. 

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

7. US markets closed in green on Friday

8. The breadth of the market was extremely weak on Friday

9. Nifty opened at 17877 and made an intra day high of 17884 and a low of 17493 before closing at 17604 .The range of Nifty for the day was 391 points.

10. Bank Nifty opened at 41382 and made an intra day high of 41417 and a low of 40148 before closing at 40345 .The range of Bank Nifty for the day was 1269 points.

11. US Dollar Index is at 101.735

12. Except for Auto, Pharma and FMCG, all sectors lost today

13. India VIX is at  17.32

14. US 10Y yields are at 3.507

15. Nifty futures saw long unwinding

16. Bank Nifty futures saw short buildup

17. US Brent oil is at 86.33

18. USD / INR is at 81.515