MARKET OUTLOOK FOR 5th August 2021

TODAY’S MARKET SNAPSHOT:

Nifty remained positive throughout the trading session on August 4 and closed above 162500 at all-time high. The nifty added 128.05 points and closed at 16258.80 while as the bank Nifty added 820.60 points and closed at 36028.05. The Sensex closed 546.41 points higher at 54369.77.

On the sectoral front, buying was seen in Fin Services, Pvt banks and PSU banks while selling pressure was seen in Realty, Media, FMCG, Consumption and Infra space.

On the broader market front, the nifty midcap 100 index closed 1.19% lower and the nifty small cap 100 index closed 1.01% lower under-performing with the benchmark indices.

The advance decline ration stood in the ratio of 1:2.5

As already predicted, Nifty continued its bull run today backed by upbeat global cues and strong buying in banking and financial sector. Tomorrow nifty is likely to face selling pressure near 16300 level. Investors are advised to remain light and book profits as broader markets saw wide profit booking. Don’t buy dips now and keep booking profits at every rise. Avoid longs.

Bank nifty is likely to continue its positive momentum in next few sessions. As bank nifty managed to close above 36000, hence there is a high possibility of another up move of 500-600 points. SBI today posted better than expected results and as a result the bull run will remain intact.

FII & DII Data

Foreign institutional investors (FIIs) net purchased shares worth Rs 2828.57 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 411.36 crore in the Indian Equity Market on August 4 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 16160 level. The call writing was seen at 16400 and 16500 strike prices while as put writing was visible in today’s trade at 16200 strike prices.

2. Bank Nifty

As per today’s option chain data, Strong resistance for bank nifty exists at 37000 level while as strong support exists at 35500 level. No writing visible today.

MAXIMUM PAIN OPTIONS FOR August 5 EXPIRY

Sectors to watch out for tomorrow

1. Nifty Bank
2. Nifty Fin Services
3. Nifty Auto

Stocks to watch out for tomorrow:

1. HDFC
2. Tata Motors
3. Granules

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