MARKET OUTLOOK FOR 7th July 2021
TODAY’S MARKET SNAPSHOT:
| NIFTY | BANKNIFTY | |
| OPEN | 15813.75 | 35173.60 |
| HIGH | 15914.20 | 35807.45 |
| LOW | 15801 | 35165.55 |
| CLOSE | 15818.25 | 35579.15 |
| PREVIOUS CLOSE | 15834.35 | 35212 |
| SUPPORT | 15720 | 35140 |
| RESISTANCE | 15920 | 35840 |
| VIEW | SELL ON RISE | POSITIVE |
The nifty 50 erased all the day’s gains in last one hour of trade and failed to close above 15900, thereby forming a gravestone Doji pattern on the daily charts. The niftypared nearly 16 points and closed lower at 15818 while the bank Niftyrose367 points and closed above35000 at 35579.15. The Sensex closed 18 points lower at 52861.
On the sectoral front, buying was seen in Fin services, Private banks, media, and Service sector, while heavy selling pressure was visible in auto, PSU banks, IT and Pharmaspace.
On the broader market front, the nifty midcap 100 index closed flat and the nifty small cap 100 index closed lower by0.66 percentunderperforming the bench mark indices.
The advance decline ration stood in the ratio of 1:1.5
As already pointed out, it is crucial for nifty to close above 15900. Unless nifty doesn’t breach 15900 on closing basis, upside will remain capped. Tomorrow if nifty fails to hold 15740 and closes below it, then fresh selling will emerge which is likely to bring nifty towards its lower range of 15400. However, if nifty finds support around 15730 level and closes above 15900, then target of 16200 remains intact in next 2-3 trading sessions. Investors are advised to remain neutral on buy on dip strategy till nifty doesn’t breach 15900.
The bank nifty opened negative but the bulls managed to pull the index in positive terrain. Slight profit booking was witnessed towards the fag end of the trade but bank nifty most importantly gave closing above 35500 after 22 trading sessions. Tomorrow bank nifty needs to hold above 35500 to move up towards 36200. If bank nifty fails to hold today’s low in next trading session, then short aggressively bank nifty futures for a possible target of 34200. Bank nifty outperformed Nifty 50 in today’s trading session as was already conveyed in the previous post.
Today’s fall in market is attributed to rising crude oil prices which hit 52 weeks high after OPEC failed to agree to production plan.
FII & DII Data
Foreign institutional investors (FIIs) net sold shares worth Rs 543.30 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 521.30 crore in the Indian Equity Market on July 6 as per provisional data available on the NSE.
TODAY’S TOP FIVE GAINERS AND LOSERS (NIFTY)
SYMBOL | LTP | %CHNG | VOLUME |
| ULTRACEMCO | 6,937.05 | 3.23 | 6,81,761 |
| SHREECEM | 27,800.00 | 3.01 | 93,088 |
| HDFCBANK | 1,531.95 | 2.44 | 88,34,516 |
| BAJFINANCE | 6,204.00 | 2.16 | 34,91,393 |
| SBILIFE | 1,025.00 | 1.50 | 16,93,798 |
| TATAMOTORS | 316.60 | -8.52 | 16,40,83,830 |
| TECHM | 1,050.00 | -2.29 | 38,65,594 |
| COALINDIA | 147.65 | -1.50 | 95,79,038 |
| TCS | 3,273.65 | -1.43 | 21,59,420 |
| M&M | 781.85 | -1.25 | 14,20,179 |
ANALYSIS OF TODAY’S DERIVATIVE DATA for 8thJuly Expiry
- NIFTY
As per today’s option chain data, strong resistance for nifty exists at 16000 level while as strong support exists at 15650 level. The call writing was done at 16000 strike price followed by 15900 and 15950 while as no significant put writing visible.
- Bank Nifty
As per today’s option chain data, Strong resistance for bank nifty exists at 36000 level while as strong support exists at 35300 level. No significant call writing visible while as put writing visible at 35500 only.
MAXIMUM PAIN OPTIONS FOR 8thJULY EXPIRY
| NIFTY | 16000 |
| BANK NIFTY | 36000 |
Sectors to watch out for tomorrow
- Nifty BANK
- Nifty Commodity
- Nifty Auto
Stocks to watch out for tomorrow:
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For exact entry and exit levels, you can mail me at investor0007@hotmail.com
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