The previous week Nifty closed above 17,300 and no one expected this kind of rally. The midcaps and smallcaps performed well after a month. Tomorrow (6 Sep 2021) the U.S. markets will be closed due to "Labor day" in the U.S. and coming Friday (10 Sep 2021) Indian markets will be closed on account of "Ganesh Chaturti".
Last week DIIs were net sellers and FIIs were net buyers. FIIs have bought for more than 6800 crores and DIIs have sold around 1400 crores in the cash market. As we expected, the fear of FED tapering the interest rates in the U.S. was the reason for FII selling and that's why FII have sold for 6800 crores in the last week of August and after the news, last week they bought more than 6800 crores.
Click here to subscribe.
Nifty is above 17,300 and SGX nifty is also indicating a gap up opening of around 60 points. If the gap up is sustained, then it's not a problem. India VIX increased but it's still below 15, so there may not be any big fall.
(Tap on image for full-screen view)
In Nifty 17,500 has the highest open interest on the call side and on the put side, 17,000 has the highest open interest in the September month expiry. In the current week expiry, the 17,500; 18,000 calls and 17,200; 17,000 puts are having huge open interests.
In Nifty Bank, 38,000 has the highest open interest on the call side and on the put side, 35,000 has the highest open interest in the September month expiry. In the current week expiry, the highest open interest is at 37,000 on the call side and 36,500 on the put side.
Global markets are positive. SGX Nifty is currently indicating nearly 60 points gap up opening, on Friday it closed near 17,400. Currently, the PCR of Nifty is 1.5 (30 Sep expiry).
Finally to conclude,
- We must look whether the gap up opening is sustained tomorrow.
- This week Nifty may trade between 17,000 and 17,500.
You can check the FII long and short data, FII DII net sales, open interest data, Global markets data, on the "Quick Bites" page. Click here and check now.
Drop your views and suggestions in the comment section below.