Dalal St Daily 22 October

 GLOBAL MARKETS

  • US markets ended up flat.
  • US markets were very volatile due to uncertainity about the stimulus package.
  • DOW Jones struggled for the direction of the market yesterday.
  • House Speaker Nancy Pelosi said she is optimistic "over the prospect" of an agreement, though admitted that President Donald Trump would likely have to sway Senate GOP leader Mitch McConnell to back the deal.
  • S&P 500 IS FLAT.
  • Dollar Index is now below 93 which is @82.4
  • Global markets are in optimism of stimulus package.
  • Volatility is expanding due to US elections.
  • The uncertainty is finalising the stimulus should have been decided by thesday midnight itself. But there was no decision took even on that day. The uncertainty is stimulus is going to come but the markets are worried about when it will be coming.
DOMESTIC MARKETS

• The market wiped out gains in the afternoon, but the recovery in last hour of trade helped benchmark indices close in the green for fourth consecutive session on October 21, led by banking and financials, and metals stocks.
• Markets crossed 12000 as expected but when ever the markets have reached this level. Markets are experiencing sell off heavily but there is a twist & turn on yesterday's session.
• Markets were on a stabilised mode till 1 o'clock untill European markets opened. European futures were on a positive note but faced some sell off  immediately after the market open.
• European markets fell due to the known issue of covid but over markets came into profit booking due to uncertainty in the stimulus issue in US. And our economy also decided to set the stimulus package next month. But swing of recovery was so high that markets recovered almost 80% due to buying which came @11800 level.
• Reliance is underperforming Nifty on a day to day basis. Markets are supporting Nifty even without Reliance.
• Even though there are plenty of positive news coming for Reliance it is falling everyday.
• When markets were at the same level before reliance was @2400 but now trading @2100.
• As the expiry trading session is on today we can expect more and more volatility today.
• India Vix is @22 level even though markets are on a bullish note this shows a voilent move is expected on either side.
• Once Nifty breaks the range 11650-12050 the next target is 12400. Because the power is so huge that if the sellers are taken out the momentum which it creates will be severe.
• Bank Nifty fell nearly 700 points intraday and recovered 550 points.
• NIFTY fell nearly 250 points and closed on a positive territory on the close to close basis
• FII have pumped in nearly 5000 points in three trading session

TRADING RANGE

• NIFTY may trade between 11650-12200
• Bank Nifty may trade between 23800-25200
For sure index will be higly volatile.


OI ANALYSIS

Calls

• Maximum Call open interest of 26.18 lakh contracts was seen at 12,500 strike
• Call writing was seen at 12,200 strike,
• Call unwinding was seen at 11,500 strike,

PUTS

• Maximum Put open interest of 25.53 lakh contracts was seen at 11,000 strike
• Put writing was seen at 12,000 strike
• Put unwinding was witnessed at 11,300 strike

FII AND DII ACTIVITY

• Foreign institutional investors (FIIs) net bought shares worth Rs 2,108.48 crore,
• (DIIs) net sold shares worth Rs 1,633.53 crore in the Indian equity market on October 21





Thanl You

SHARATH R

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