MARKET OUTLOOK FOR 13th August 2021

TODAY’S MARKET SNAPSHOT:

The nifty index remained in a positive terrain throughout the trading session on August 12. The nifty added 82.15 points and closed higher at 16364.40, while the bank Nifty added 130.65 points and closed higher at 35937.05. The Sensex closed 318.05 points higher at 54843.98.

On the sectoral front, buying was seen in all sectors except Pharma and health care.

On the broader market front, the nifty midcap 100 index closed 1.01% higher, and the nifty small cap 100 indexes closed 2.12% higher, out-performing with the benchmark indices.

The advance-decline ratio stood in the ratio of 4:1

Nifty once again broke the trading range on the upside and closed near the day’s high, which is a bullish sign. Nifty is continuously making higher-highs higher-lows from the last few sessions, which is also a bullish sign. The nifty index is likely to witness follow-on buying tomorrow and will likely reach 16500, where the market participants expect profit booking. My personal opinion is that one should avoid shorting this market as it will blow off your hands. Follow the trend, and currently, the trend is favouring the bulls. Any dip towards 16160 should be an ideal opportunity to create long positions. On the downside, if nifty fails to hold 16160 in the next 1-2 sessions, it will open gates for 15900-15800 levels. Be neutral on the nifty index.

Today was another day of consolidation on bank nifty.  Bank nifty is continuously showing positive momentum on daily charts. Bank Nifty continuously makes higher-highs higher-lows from the last few sessions, which is also a bullish sign. Another scope of 1200-1500 points is still left with the bank nifty. Investors are suggested to initiate long positions on bank nifty for a target of 37000 in the next few sessions. Buy every dip. Technically, the bank nifty index has been trading in a very narrow range and hasn’t broken its previous day low and sustained above the same one, which indicates bullish strength in the counter.

TODAY’S TOP FIVE GAINERS AND LOSERS (NIFTY)

ANALYSIS OF TODAY’S DERIVATIVE DATA for August Expiry

1. NIFTY

Today’s option chain data shows that strong resistance for nifty exists at the 16500 levels, while strong support exists at the 16200 levels. No major writing was seen in both calls and put side due to the weekly expiry today.

2. Bank Nifty

As per today’s option chain data, Strong resistance for bank nifty exists at the 36200 levels while strong support exists at 35500 levels. Significant call writing seen in today’s trade was seen at 36500 while major put writing seen in today’s trade at 35500.

MAXIMUM PAIN OPTIONS FOR August EXPIRY

Sectors to watch out for tomorrow

1. Nifty IT
2. Nifty Bank
3. Nifty Metal

Stocks to watch out for tomorrow:

1. HCL Tech
2. MRPL
3. Vakrange

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