MARKET OUTLOOK FOR 2nd August 2021

TODAY’S MARKET SNAPSHOT:

Nifty remained volatile throughout the trading session on July 30 and closed flat near the day’s low. The nifty lost 15.40 points and closed at 15763.05 while as the bank Nifty fell 107.15 points and closed at 34584.35. The Sensex closed 66.23 points lower at 52586.84.

On the sectoral front, buying was seen in Pharma, media  and auto space, while as selling pressure was seen in metals and commodities.

On the broader market front, the nifty midcap 100 index closed 1.10% higher and the nifty small cap 100 index closed 0.44% higher outperforming the benchmark indices.

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

Nifty erased all the gains of the session in the late trade and formed a shooting star pattern on the daily chart and a hammer pattern on the weekly scale. a close look at the price action of the last five sessions suggests that nifty is stuck in a very narrow range  between 15600-15900. For any sustainable action, the nifty needs to break out of this range and hence traders have no option but to remain neutral.

Bank nifty is currently looking very bearish on daily, weekly and monthly charts. The bank nifty has to hold above 34500 levels to move up towards 35000 and 35300 while on the downside, support is seen at 34350 and 34000. Avoid fresh longs on bank nifty.

FII & DII Data

Foreign institutional investors (FIIs) net sold shares worth Rs 3848.31 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 2956.68 crore in the Indian Equity Market on July 30 as per provisional data available on the NSE.

TODAY’S TOP FIVE GAINERS AND LOSERS (NIFTY)

ANALYSIS OF TODAY’S DERIVATIVE DATA for August 5 Expiry

1. NIFTY

As per today’s option chain data, strong resistance for nifty exists at 15900 level while as strong support exists at 15500 level. The call writing was seen at 15800, 15900 and 16000 strike prices while as put writing was visible in today’s trade at 15500 and 15400 strike prices.

2. Bank Nifty

As per today’s option chain data, Strong resistance for bank nifty exists at 35000 level while as strong support exists at 34500 level. The call writing was seen at 34800, 34900 and 35000 strike prices while as put writing was seen at 34500 and 34400 strike prices.

MAXIMUM PAIN OPTIONS FOR  August 5 EXPIRY

Sectors to watch out for tomorrow

1. Nifty IT
2. Nifty Pharma
3. Nifty Bank

Stocks to watch out for tomorrow:

1. Ashok leyland
2. Marico
3. Sun Pharma

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