MARKET OUTLOOK For 5th July 2021

TODAY’S MARKET SNAPSHOT:

	NIFTY	BANKNIFTY
OPEN	15705.85	34728.10
HIGH	15738.35	34894.45
LOW	15635.95	34632.60
CLOSE	15722.20	34809.90
PREVIOUS CLOSE	15680	34684
SUPPORT	15620	34500
RESISTANCE	15780	35000
VIEW	BUY ON DIPS	Sell on Rise

The nifty recouped losses amid volatility in the last hour of the trade to close above 15700 on July 2, forming a hammer pattern (bullish reversal pattern) on the daily charts. The niftyrose nearly 42 points and closed at 15722 while the bank Niftyrose125 points and closed above34800 at 34809. The Sensex closed 166 points higher at 52484.

On the sectoral front, buying was seen in Pharma,media, reality and fin services, while heavy selling pressure was visible in metal, and marginal in commodities, PSE, energy, FMCG and autospace.

On the broader market front, the nifty midcap 100 index was up0.51 percent in line with the bench mark indices and the nifty small cap 100 index was up1.07 percentoutperforming the benchmark indices.

The advance decline ration stood in the ratio of 1.3:1

Nifty broke important support level of 15680 during the day but short covering by market participants in last one hour of trade lifted nifty and closed above 15700 amid thin volumes. The next trading session is of utmost importance for nifty because if nifty 50 spot breaks 15680 in the first hour of trade, then selling pressure will accelerate which might push nifty 50 below 15600. Considering the volatility, traders should remain neutral in the next session by shifting focus to stock-specific opportunities.

Bank nifty was down for majority of the trading session on July 2 . Bank nifty again took support near 34600 and closed slightly above 34800. The overall data on bank nifty looks very negative. The next session is of great importance for bank nifty because if it fails to break 34900, then it may revisit 34200 in next 2-3 trading sessions. For upward movement, bank nifty spot has to close decisively above 35200 in next 1-2 sessions.

FII & DII Data

Foreign institutional investors (FIIs) net sold shares worth Rs 982.80 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 930.39 crore in the Indian Equity Market on July 2 as per provisional data available on the NSE.

TODAY’S TOP FIVE GAINERS AND LOSERS (NIFTY)

Company	Price	Change	%Gain
Gland	3,462.60	95.45	2.83
Divis Labs	4,519.65	83.95	1.89
ICICI Bank	640.25	9.40	1.49
Reliance	2,129.05	31.10	1.48
Coal India	147.65	2.00	1.37
Tata Steel	1,136.00	-27.55	-2.37
Britannia	3,545.30	-50.50	-1.40
JSW Steel	671.30	-9.25	-1.36
Power Grid Corp	227.95	-2.85	-1.23
Hindalco	376.05	-3.35	-0.88

ANALYSIS OF TODAY’S DERIVATIVE DATA for 8^thJuly Expiry

1. NIFTY

As per today’s option chain data, strong resistance for nifty exists at 15800 level while as strong support exists at 15600 level. The highest call writing was done at 15800 strike price followed by 15900 and 16000 while as put writing was visible in today’s trade at 15600 & 15500.

• Bank Nifty

As per today’s option chain data, Strong resistance for bank nifty exists at 35000 level while as strong support exists at 34600 level. Call writing done at 35000, and subsequent strike prices while as put writing visible at 34600 and below strike prices.

MAXIMUM PAIN OPTIONS FOR 1^ST JULY EXPIRY

NIFTY	16000
BANK NIFTY	35200

Sectors to watch out for tomorrow

1. Nifty BANK
2. Nifty Pharma
3. Nifty Auto

Stocks to watch out for tomorrow:

1. Tata Chemicals
2. Aurobindo Pharma
3. Deepak Nitrite

For exact entry and exit levels, you can mail me at investor0007@hotmail.com