MARKET OUTLOOK FOR 4th August 2021

TODAY’S MARKET SNAPSHOT:

Nifty maintained positive momentum throughout the trading session on August 3 and finally closed above 16000 at all-time high. The nifty added 245.60 points and closed at 16130.75 while as the bank Nifty added 497.45 points and closed at 35207.45. The Sensex closed 872.73 points higher at 53823.36.

On the sectoral front, buying was seen in all sectors barring metals and media.

On the broader market front, the nifty midcap 100 index closed flat and the nifty small cap 100 index closed 0.24% lower under-performing with the benchmark indices.

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

Nifty broke the upward end of the range today, courtesy huge short covering by market participants, and closed well above the psychological level of 16000. Since the range has broken on the upper side, hence further steam is still left in the nifty which may take it up to 16250-16300. Buy every dip and lighten your positions near 16250-16300 range.

Bank nifty today negated all the bearishness on daily charts. The bank nifty also broke the upper end of the range today and closed well above the psychological level of 35000. Bank nifty is expected to continue its bull run till 35500-35550 where profit booking is expected by the market participants. In case, bank nifty closes above 35500 tomorrow, then a further move of 1000 points on the upside is highly possible. Buy every dip.

FII & DII Data

Foreign institutional investors (FIIs) net purchased shares worth Rs 2116.60 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 298.54 crore in the Indian Equity Market on August 3 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 16300 level while as strong support exists at 15900 level. The call writing was seen at 16400 and 16500 strike prices while as put writing was visible in today’s trade at 16000, 15900 and 15800 strike prices.

2. Bank Nifty

As per today’s option chain data, Strong resistance for bank nifty exists at 36000 level while as strong support exists at 35000 level. No significant call writing seen in today’s trade while as put writing was seen at 35000, 34900 and 34800 strike prices.

MAXIMUM PAIN OPTIONS FOR August 5 EXPIRY

Sectors to watch out for tomorrow

1. Nifty Metal
2. Nifty FMCG
3. Nifty Auto

Stocks to watch out for tomorrow:

1. Sail
2. SBI
3. Titan

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