Dalal St Daily 13th October

 GLOBAL MARKETS

  • US markets closed higher. Wall St main indices rose for fourth straight session on Monday on optimism that a corona virus relief package would eventually come around.
  • The rally was powered by tech stocks which led by apple for the new iPhone release which provided the biggest boost in all three indices.
  • Markets are expecting the relief package to be coming whoever may win the president election next month. Volatility in the markets are very high due to this.
  • Dow Jones was up by 300 points 1.2%, NASDAQ was up by 3%.
  • Despite the markets are rallying higher VIX was rising in the US markets which indicates a big up move coming in the US markets soon.
  • Dollar Index near to 93.
  • Crude Oil is down by 3%.
  • European markets closed higher on Monday.
DOMESTIC MARKETS
  • Asian markets closed on a higher note despite the sell off which came at the psycological level of Nifty.
  • Asian markets opened
  • SGX Nifty opened
  • Our markets are expected to open following the global cues.
  • Yesterday Nifty had reached its 8 months high and a known correction occurred at 12000 level.
  • Nifty was up by 80 points which was led by ITC and Infosys in the early hour of trading but later sell off came in Nifty heavy weights but Reliance was supporting the markets heavily. The main sell off came from the HDFC BANK and other banking stocks.
  • Bank Nifty fell 400 points from Intraday high.
  • From close to close basis, Nifty still sustained the gap up for 10 straight sessions and closed higher.
  • But Bank Nifty closed 100 points lower in terms of close to close basis.
  • And it was triggered by the announcement made by the finance minister to consumer spending and capital expenditure failed to cheer the investors.
  • Even though there was a touch and fall moment in Nifty there is no probable sign of Nifty reversing. Till now even after the stretched uptrend Nifty is not showing any sign of reversals. So stop thinking that Nifty will Reverse from this point.
  • Because Bank Nifty is still down 1500 points from its recent highs and still recovered only 50% from the March Low's even though Nifty is near to its all time highs. Imagine just once what happens if Bank Nifty alone starts to recover and rally towards its all time highs. By that time Nifty will be near to its upper range of 1 year 1  standard deviation of 15000 level. Along with the fuel added to the rally by Reliance and IT stocks.
  • But FII's were net buyers which shows FII's are still interested @12000 level.
  • Overall market breadth has been in the area of concern for the  Bench mark Nifty.
  • Broader market indices Midcap and Small cap indices continued to show under performance and continued with minor weakness.
TRADING RANGE
  • Nifty may trade between 11700-12150
  • Bank nifty may trade between 23000-24300
OI ANALYSIS


CALLS

  • Maximum CALL OI stands @ 12500 level with 23 lakh contracts.
  • CALL writing was seen @12200 level.
  • CALL unwinding was seen @11800 level.
PUTS
  • Maximum PUTS OI stands @11000 strike with 23 lakh contracts.
  • PUT writing was seen @11600 level
  • PUT unwinding was witnessed @11300 level.

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