TODAY’S MARKET SNAPSHOT:
The nifty remained in a negative territory throughout the trading session on July 19. The nifty shed 171 points and closed lower at 15752.40 while the bank Nifty fell 672.60 points and closed lower at 35079.20. The Sensex closed 586.66 points lower at 52553.40.
On the sectoral front, buying was seen in Pharma, Realty and PSE sectors while heavy selling pressure was seen in PVT banks, Fin Services, metal, auto and PSU bank space.
On the broader market front, the nifty midcap 100 index was down 0.81 percent, in line with the bench mark indices, and the nifty small cap 100 index closed flat in positive terrain, outperforming the benchmark indices.
The advance decline ratio stood in the ratio of 1:1.25
Today Nifty 50 formed a Doji Pattern on daily charts. Investors are advised to go short on nifty once it breaks today’s low of 15707 for a modest target of 15620. If nifty fails to hold 14620 in next -1-2 sessions, then the possible target on nifty looks to be 15400. On the upside, if nifty holds 15707 tomorrow, then there would a bounce back till 15820-15840 level. Overall, the nifty has entered in a neutral/ sideways zone and investors should avoid taking long positions on nifty futures.
Bank nifty also formed a Doji pattern on daily charts today and negated its higher highs-higher lows of the last five sessions. However, it managed to close above 35000 today which might give some sigh of relief to bulls. I suggest to go short on bank nifty futures for a target of 34500 keeping a stop loss at today’s high. Overall, the chart pattern of bank nifty looks very bearish.
Global cues and earnings announcements will continue to dictate the market trend in coming sessions. The progress of the monsoon and covid related updates will also remain the main areas of focus in the coming sessions.
FII & DII Data
Foreign institutional investors (FIIs) net sold shares worth Rs 2198.71 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 1047.66 crore in the Indian Equity Market on July 19 as per provisional data available on the NSE.
TODAY’S TOP FIVE GAINERS AND LOSERS (NIFTY)
ANALYSIS OF TODAY’S DERIVATIVE DATA for 22nd July Expiry
As per today’s option chain data, strong resistance for nifty exists at 15800 level while as strong support exists at 15700 level. The call writing was seen at 15800, 15900 and 16000 strike prices while as no significant put writing seen in today’s trading session which indicates further weakness in the market in next few sessions.
- Bank Nifty
As per today’s option chain data, Strong resistance for bank nifty exists at 35500 level while as strong support exists at 35000 level. Call writing seen at 35200, 35300 and 35400 strike prices while as put writing was seen at 35000 and 34500 strike prices.
MAXIMUM PAIN OPTIONS FOR 22nd JULY EXPIRY
Sectors to watch out for tomorrow
- Nifty Bank
- Nifty Small Cap
- Nifty Realty
Stocks to watch out for tomorrow:
- Clean Science
- HDFC Bank
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