MARKET OUTLOOK FOR 18th August 2021

TODAY’S MARKET SNAPSHOT:

The nifty index remained HIGHLY VOLATILE throughout the trading session on August 17. The nifty added 51.55 points and closed higher at 16614.60, while the bank Nifty lost 227.05 points and closed lower at 35867.45. The Sensex closed 209.69 points higher at 55792.27.

On the sectoral front, buying was seen in IT, Healthcare, FMCG, and consumption, while selling was seen in Metal, PSU Banks, Commodities.

On the broader market front, the nifty midcap 100 index closed 0.33% higher, and the nifty small cap 100 indexes closed 0.25% lower.

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

The analysis would remain the same. Nifty is continuously making higher highs from the last seven sessions. Today nifty outperformed with 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 the index has not reacted to the negative global cues today, a big correction will likely happen tomorrow. Be Neutral on the market.

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 the 16800 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. Wipro

2. Infosys

3. Apollo Hospital

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