Dalal St Daily 9th October

 GLOBAL MARKETS

  • Global markets are in positive territory with stimulus hopes.
  • US markets closed in green. Wall street hits one month high as Trump signals stimulus progress.
  •  Dow Jones was up by 100points but it lost its gains as Pelosi rejects piece meal stimulus
  • Crude oil prices rose with the same stimulus hopes.
  • Dollar index is below 94 and is consolidating near 93.550
  • Rupee is gaining against Dollar.
  • Dollar is likely to keep gold prices volatile.
DOMESTIC MARKETS
  • Asian markets have opened higher.
  • SGX Nifty is trading @11871 45 points above the previous day close. 
  • Our markets are expected to open higher with positive global cues.
  • Indian markets ended up in positive territory for 7th straight session.
  • One of the rarest of rarest market movements in Indian stoc m.jk market where the Nifty fell nearly 1000 points with in 6 days and it took a V shape recovery and recovered back 1000 points with in a week.
  • This is the seventh trading session where Nifty sustained all the gap ups and managed to close higher.
  • As mentioned in the pre market blog of 8th October Nifty consolidated above the major resistance and crucial zone of 11800, and the sell off came on the late part of the trading session creating some volatility due to profit booking which came at the higher levels and due to expiry day trading session.
  • Even though Nifty and Bank Nifty are raising we are seeing some selling pressure everyday in the after noon session.
  • After breaking the Highs Nifty has formed a Doji like candle stick pattern on daily charts. Consolidation is expected today.
  • Nifty was up by 170 points in the morning and created a fresh monthly highs and the sell off came but still Nifty managed to sustain the gap up and closed higher.
  • IT sector and Banking sector pushed the benchmark indices higher.
  • Even though markets are creating fresh monthly highs India VIX was rising and is above 20 as of the end of Thursday trading session. 
  • Bank Nifty took some huge shock in the after noon session. 23000 PE shot up from 3 Rs to 40 rs with in matter of 3 minutes and again returned back to 3 Rs with in 5 minutes and decayed to 0 by the end of the day.
  • Broader markets ended up mixed with negative breadth
  • 4 shares were declined out of every 5 shares on NSE.
  • Nifty mid cap index was up 0.4%
  • HDFC Twins, TCS, Wipro and HCL Tech and Infosys contributed about 80points alone.
  • But Reliance outperformed on Wednesday's trading session but dragged Nifty 17 points and was the major reason for the sell off.
  • Even though TCS came out with good results the market didn't react much after the release but the profit booking came after fresh new highs created in TCS 
  • Next week there are lots of strong Large Cap index heavy weights declaring its results one among them is Infosys on Wednesday and Reliance Industries on Friday.
  • Next week some volatility in the markets are expected due to the earnings release.
TRADING RANGE

      Nifty may trade between 11720-11950
      Bank Nifty may trade between 22900-23600

OI ANALYSIS

CALLS
  • Maximum Call OI now shifted to 12500 level from 12000 with 20 lakh contracts.
  • Call writing was seen @ 12500  which holds 19.54 lakh contracts followed by 11800 strike.
  • Call Unwinding was seen @11700 strike which shed 2 lakh contracts.
PUTS
  • Maximum PUT OI now stands of 24 lakh contracts was seen @ 11000 srike
  • Put writing was seen @11800 strike which shows plenty of Straddles has been deployed.
  • Put Unwinding was witness @ 11100 strike which shed 1.5lakh contracts.
BUILT UP SECTOR
  • IT stocks, Nifty 50 stocks and Pvt Banks are on the LONG side according to the OI Analysis
  • FMCG, NBFC and Metal stocks are facing selling pressure.
  • Long Unwinding was seen at Oil and infrastructure stocks.
  • Short Covering was seen in Pharma stocks, Bank Nifty stocks and Cement stocks.
BUILT UP STOCKS
  • TCS, ICICI Bank, wipro which are the index heavy weights for Nifty as well as Bank Nifty stocks was experiencing some short coverings.
  • Asian paints, Titan, Axis bank saw some long unwinding in their OI analysis.
FII & DII ACTIVITY
  • FII has pumped in 900 crores to the equity markets where as 
  • DII has also been net buyers for 19 crores.





Thank You
SHARATH

Location: Bengaluru, Karnataka, India

Comments

Post a Comment

Popular posts from this blog

Dalal St Daily 25th September

  GLOBAL MARKETS US markets ended up green.  US markets were stuck in a volatile range for most of the part in yesterday's session and profit booking came @ higher levels. At the opening US markets fell 48 points as initial jobless cliams data shown rising figures and recovered during the session. Dollar Index is rising above 94. SGX Nifty opened higher. SGX Nifty is up by 83 points. Crude oil prices are trading 1% higher. Japan's Nekkai opened and trading 0.5% higher. Asian markets are up. DOMESTIC MARKERS A sell off in global markets and fear in rising corona virus infections and fear of lockdown led the blood bath on Dalal St. Yesterday Nifty openend lower and continued to tank without making any high. open and high was same. Nifty tanked about 300 points and closed @10805. & BankNifty fell for more than 700 points and ended up below 20500. FII pulled out 1800Cr from cash market and in the after noon session they were aggressively selling. But, our DII's were so exha...
Read more

Dalal Street Daily 23rd September

US markets ended up in positive territory. After "Quadruple Witching Day" US markets saw some cooldown in volatility.  Brent Crude is up by 1% Dollar Index hit 94. SGX Nifty opened flat. Asian markets are mixed.  India VIX is not rising but decreasing which shows panic in the market is not much strong. That doesn't mean market will rise, but the fall from here is less. The correction in the market is healthy and this correction may end any moment. Being the monthly and weekly expiry week the markets are too volatile. FII's become net sellers for two straight sessions, and DII's after selling for 10 consecutive sessions yesterday they have become net buyers. FII have sold shares worth 2000 Cr and DII have bought shares worth 800 Cr. Broader market closed in red. Yesterday's nifty open & high was same which showed some weakness in the market. some institutional activity was seen in 2nd half of the market. Nifty has closed below its 50 D EMA which shows some ...
Read more

Dalal St Daily 21st september 2020

    US markets ended in the negative territory for third straight session on Friday. Investors started   to dump on high flying tech stocks. Apple is almost down by 20% from it’s recent highs. Not      everything lasts for long, something must start after the end of the other. All markets have been  correcting heavily to show up some big momentum is coming ahead in time. Bulls are taking some power nap and may awake anytime. ·          Dollar index is weakening which is not a good sign for Indian stock markets. ·          When US markets breaking it’s all time highs our markets was still down 5-6% and was not aggressive but struggling compared to US markets. forget about banknifty it has still recovered only half of its fall. But Asian markets reacted heavily for the fall in US markets. ·          On Thursday when the news ...
Read more