MARKET OUTLOOK FOR 17th August 2021

TODAY’S MARKET SNAPSHOT:

Nifty index remained HIGHLY VOLATILE throughout the trading session on August 16. The nifty added 33.95 points and closed higher at 16563.05 while as the bank Nifty lost 74.85 points and closed lower at 36094.50. The Sensex closed 145.29 points higher at 55582.58.

On the sectoral front, buying was seen in metal, oilGas, commodities and energy while selling was seen in Media, PSU Banks, Auto, Pharma and Realty Space.

On the broader market front, the nifty midcap 100 index closed 0.34% lower and the nifty small cap 100 index closed 0.78% lower under-performing with the benchmark indices.

The advance decline ration stood in the ratio of 1:2

Nifty is continuously making higher highs from last six sessions. Today nifty outperformed with the global peers. Nifty is looking quite expensive at these levels. I think one should initiate short positions from here on. A big correction of 200-300 points looks eminent here. Avoid long and exit from all long positions.

Bank nifty is looking very negative from these levels. One should book profits at these levels. A correction of 1000-1500 points looks very likely. Avoid long positions and initiate fresh shorts.

Both nifty and bank nifty are looking overbought on daily charts. Since index has not reacted to the negative global cues today, hence big correction is likely to happen tomorrow.

TODAY’S TOP FIVE GAINERS AND LOSERS (NIFTY)

ANALYSIS OF TODAY’S DERIVATIVE DATA for August Expiry

1. NIFTY

As per today’s option chain data, strong resistance for nifty exists at 16600 level while as strong support exists at 16500 level. No major writing was seen in both call and put side due to weekly expiry today.

2. Bank Nifty

As per today’s option chain data, Strong resistance for bank nifty exists at 36200 level while as strong support exists at 35500 level. Significant call writing seen in today’s trade was 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. Fortis Health

2. VIP

3. Vakrange

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