Dalal St Daily 23rd NOV

GLOBAL MARKETS
  • On Friday U.S. markets closed lower.
  • Dow future was down by 271 points.
  • Nasdaq was down by 0.93%.
  • U.S. markets are wrestling with fiscal stimulus developments, lengthy time to roll out of the vaccine which is fading away with rise in covid cases in U.S. and European countries. 
  • And today as of 7:00 AM Dow futures is trading flat which is up by 90 points.
  • On Friday European markets closed flat with minor gains.
  • U.S. markets are clearly indicating a consolidation mood from its recent high.
  • For U.S. this week is a crucial one, because there are plenty of major events coming ahead this week. check out the event section at the end of the blog.
  • U.S. came out with job loss data which was very bad and negative to the markets.
  • Pfizer have applied to U.S. health regulators on Friday for emergency use authorization (EUA) of its COVID-19 vaccine, the first such application in a major step toward providing protection against the new coronavirus.
  • Dollar index futures is trading around 92.393 which is a good sign for the investors in India.
  • Crude is trading $42.37 per barrel.
  • Now we are in winter consumption for the crude and the demand will pickup along with this the hope on rolling out of vaccine can make the crude prices to shoot up.
  • As of now markets haven't shown any sign of reversals or start of a down trend . But markets are making a violent moves on the either side swinging in between the range.
  • S&P 500 VIX is below 25 which is a good sign for the bulls but is oscillating between both the sides.
DOMESTIC MARKETS
  •  Indian markets closed in the positive territory on Friday. 
  • Nifty ended up 87 points higher.
  • Asian markets have opened significantly higher 
  • SGX has opened 75 points higher which indicates a positive opening.
  • Expecting markets to open higher on the positive global cues.
  • Bank Nifty ended up 332 points higher the funny part of the Bank Nifty  on Friday is at the opening of 1st one minute it fell for 200 points and with in next 5 minutes it recovered almost 400 points and from there it fell for another 550 points and by afternoon session Bank Nifty shot up 850 points from it's intraday low. which is approximately 2000 points swing by Bank Nifty in one trading session.
  • Our markets are making violent moves but it is consolidating and moving with in a range of 300 points.
  • Sell of in markets can be seen at higher levels.
  • On weekly charts Nifty has formed a negative candle with small shadow which shows that profit booking has started at higher levels.
  • There is no one valid reason to stay bearish until the markets break and close below 11740 level.
  • We can expect Nifty to first touch 13000 and then 12650 and then again 13000.
  • There will be a small correction which must be there for markets to breath out and gain back the momentum to break it's highs. we can expect that this week and we can also expect the next up trend by next week.
  • The overall market breadth continued to be positive and broad market indices like Midcap and Small cap segments have closed on a decent gains of around 0.86 percent and 1.15 percent.
  • There are no major events coming this week for our markets we will be following the global markets for this weeks trading session.
  • Being the last week monthly expiry we can expect some added up fuel to the ongoing volatility.
  • Conversion of large NBFC to Banks proposed by the RBI is beneficiary for the NBFC but a opponent or a new rival for the present PVT Banks, which will have some challenges in the business. 
  • FII's are continuously pumping in the money which is highest money pumped in previous two decades. Naturally when FII's pumped heavily into the markets and DII's have stopped selling that is where the markets peak out. DII's stop selling when the markets near to its peak stage.
  • Reliance has saw some short covering. which is almost down and corrected by 20% from its all time high. Reliance may fall 40-50 more points and by this time shorts will start to cover up their positions.
TRADING RANGE ( WEEKLY )
  • Nifty may trade between 12317-13463.
  • Bank Nifty may trade between 27500-31000

TRADING RANGE ( DAILY )
  • And for today Nifty futures may trade between  12600-13100
  • and Bank Nifty futures may trade between 28400- 30000


OI ANALYSIS

CALLS
  • Maximum Call open interest of 35.99 lakh contracts was seen at 13,000 strike.
  • Call writing was seen at 13,200 strike.
  • Call unwinding was seen at 12,900 strike.
PUTS
  • Maximum Put open interest of 44.03 lakh contracts was seen at 12,000 strike.
  • Put writing was seen at 12,800 strike.
  • Put unwinding was seen at 13,100 strike.


FII & DII ACTIVITY

  • Foreign institutional investors (FIIs) net bought shares worth Rs 3,860.78 crore.
  • Domestic institutional investors (DIIs) net sold shares worth Rs 2,868.66 crore.




THANK YOU 

SHARATH R

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