17th February' 2023 (Evening)

17th February' 2023  (Evening)  --  | Written at 7.00 PM on 19th February' 2023  |

  • Markets on Friday were generally weak and most of the indices were weak. This week being the last week of this trading month and also loaded with multiple important events globally led to some caution amongst global investing community.
  • In the Indian markets, Nifty was strong on weekly chart and weak on the daily chart. On the daily chart it made a strong bearish candle, though staying above an important level. This was back to back the second day of losses on Nifty.
    • Nifty Supports :- First supp - 17880 / Second supp - 17725 / Strong supp - 17350
    • Nifty Resistance :- First Res - 18050 / Second Res - 18150 / Strong Res - 18200
  • Bank Nifty on the other hand was weak and made a bearish engulfing candle on the weekly chart. On the daily chart it broke down on an important level and now shows the following levels..
    • BankNifty Supports :- First supp - 40875 / Second supp - 40600 / Strong supp - 39400
    • BankNifty Resistance :- First Res - 41325 / Second Res - 42000 / Strong Res - 43075
  • Globally the markets were kind of weak on Friday, with Asia (mostly), Europe closing in red and US closing mixed.
  • On the futures and options side, Nifty saw heavy call writing and has a strong call writers base positioned at 18000 for Nifty and 42000 for BankNifty indicating strong resistances. While on the Put side, the conviction was not strong. Although, during the last hours of trading, some base started building up at 17900 for Nifty and 41000 for BankNifty, indicating support at these levels.
  • India VIX slightly increased on Friday, however is quite low and tolerable. Watch for any breakout from 17900 to 18000 for Nifty and 41000 to 41500 for BankNifty. Normally, this combined with the levels indicated as support and resistance should help build a view for the markets.
  • From my view point, the weakness buildup on Friday will be negated only if the indices take down the first resistances mentioned above. Till then i would keep a cautious view with a bearish bias.
  • This being the last trading week of this series, expect volatility to increase and with low VIX and option premiums, options traders need to be a bit careful.
  • Oil, Rupee, US yields all continue to be in a range and pose no surprise as of now.
  • Adani fever seems to be over, though some red flags have been highlighted again on its credibility.
  • Watch for these important events this week.
  • Wish a happy trading week ahead...

1. FII were net sellers for 624 Cr today, while DII were sellers for 85 Cr. A net selling of 709 Cr from the institutional side.

2. FII's unwound 1536 longs and created 9804 shorts on the index futures

3. On the option front FII  created 221500 short calls and   created 91475 short puts. They also bought 148468 long calls and  bought 158266 long Puts.

4. For next week expiry, Nifty has the highest OI for PE at 18000 followed by 17500 and highest OI for CE is at 18000 followed by 18100. Highest Put writing was seen at 17900 and highest call writing was seen at 18000 levels.

5. For the next week expiry, Bank Nifty has the highest OI for PE at 41000 followed by 41500 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 in mostly in red and Europe closed in red

7. US markets closed mixed with Dow in green and Nasdaq and S&P in red

8. The breadth of the market was weak on Friday

9. Nifty opened at 17974 and made an intra day high of 18034 and a low of 17884 before closing at 17944 .The range of Nifty for the day was 150 points.

10. Bank Nifty opened at 41514 and made an intra day high of 41516 and a low of 40882 before closing at 41131 .The range of Bank Nifty for the day was 634 points.

11. US Dollar Index is at 103.83

12. Led by Realty, IT and Banking stocks, most of the sectors closed in red today

13. India VIX is at  13.08

14. US 10Y yields are at 3.817

15. Nifty futures saw Short buildup

16. Bank Nifty futures saw short buildup

17. US Brent oil is at 83.15

18. USD / INR is at 82.765


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