EquityCompound2

31st May' 2021 (Evening) Markets opened slightly lower today, saw a bit of slide and then quickly took support to rise and close strong. Nifty crossed 15600 and made a new All time high of 15606, before closing at 15582. BankNifty picked support at 34930 and then rose to cross 35500 to close at 35526. BankNifty had a strong resistance at 35450 and it struggled for almost the whole day to cross this. Both indices took support almost at the same levels I mentioned yesterday. Even after BankNifty crossing 35500, any reasonable unwinding of calls at 35500 were not noticed. Raising suspicion on the sustenance of BankNifty at this level. Nifty on the other had saw heavy put writing at 15500 without any reasonable call writing, indicating a strong momentum even at this level. While the market rise today, was a little more broader than Friday, Auto and IT still have not participated in the rally. Reliance was again a prime mover today, rising 3% again. A sustenance above 35500 tomorrow, co...

28th May'2021 (Evening) The opening day of the Jun series saw buying from both DII and FII side. Cash buying on the first day is normally a good sign.  FII created more longs than shorts and that too is a good sign for the markets. The FII are now 88% long on the indices.  Though, the FII did sell more calls than puts , this is could be indicative of some hedging from short term movements. Nifty on Friday crossed its all time high, saw some selling but did not fall much and recovered to close above its previous ATH of 15431. Not seeing an immediate rejection from these levels are indicative of strength. However, the broader market breadth was not strong. While Nifty 50 saw 27 stocks growing against 23 going down. Nifty 500 saw only 199 going up against 299 going down. Also while Nifty gained, most of the important indices made bearish candles on the daily chart. BankNifty though closed higher, actually made a bearish candle as compared to Nifty. Without participation of BankNi...

26th May'2021 (Evening) 1. FII were net buyers for 241 Cr today, while DII were sellers for 438 Cr. A net selling of 197 Cr from the institutional side. 2. FII's created 11998 longs and unwound 434 shorts on the indices 3. On the option front FII  sold 25132 calls and   sold 28164 puts. They also bought 48432 calls and  bought 48420 Puts. 4. For next week expiry, Nifty has the highest OI for PE at 15200 followed by 15000 and highest OI for CE is at 15500 followed by 15400. Highest Put writing was seen at 15300 and highest call writing was seen at 15400 levels. 5. For the next week expiry, Bank Nifty has the highest OI for PE at 34500 followed by 34000 and highest OI for CE is at 35000 followed by 36000. Highest Put writing was seen at 34500 and highest call writing was seen at 36000 levels.  6. Asian markets closed in green and Europe closed mixed. 7. US markets trading marginally in green 8. The breadth of the market was mildly positive today 9. Nifty opened at...

25th May'2021 (Evening) Markets opened gap up today and as mentioned yesterday, started to see selling. This was more pronounced in BankNifty than Nifty. On a daily chart, both indices made bearish candles with a reasonable tail below, indicating some support coming in at lower levels. While, Nifty still made candle with a higher high and a higher low, BankNifty actually made lower high and lower low. So I feel, todays low become important levels for tomorrow. If these levels are protected than, these may become immediate swing supports for the indices. Tomorrow's first half trade is important from this view point. 15300 and 35200 have proven to be strong resistances for today atleast. Levels continue to be important and buy on dips has been working for past few days. Buying near todays low tomorrow with a stop loss slightly below, may work if the market gives a dip, which i feel it will give. Nifty seems to be having support at 15150 and BankNifty at 34400 for this week. These...

24th May' 2021 (Evening) After a stellar rise on Friday, indices made some decent gains today as well. Nifty gaining 22 points and BankNifty  made 336 points. It is important though that both the indices made bearish candles on the first day of the last week in May. While the indices opened strong and rose initially, they had stiff resistance at 15250 for Nifty and 35200 for BankNifty.  As mentioned yesterday, this range is a critical resistance and may not be easy to take off. Both the indices were rejected from these levels. Markets may make another attempt tomorrow to breach these levels. The FnO positioning of FII are bearish and also DII and FII are not in sync in cash market. Nifty saw some shorts building up around 15300 levels and these may get stronger tomorrow if Nifty fails to take off 15300 levels tomorrow. BankNifty though hasn't seen a buildup of short as yet. So it may prove to be stronger than Nifty from these levels. However, a failure to take off 35200 tomorr...