TODAY’S MARKET SNAPSHOT:
After hitting fresh record highs in the first hour of the August 18 session, the benchmark indices saw profit booking in the latter part of the day amid heavy selling in banking and metal stocks. The nifty formed a dark cloud cover pattern on the daily chart, which is a bearish sign. Nifty has good support around 16480, if broken, more profit booking may take Nifty towards 16300. Traders should avoid building long positions and should adopt Sell on rise Strategy.
Bank nifty is looking very bearish. It has hold above 35500 in next session, otherwise it is likely to hit 35000 in next 1-2 sessions. Avoid bank stocks for the time being.
The advance decline ration stood in the ratio of 1:2
FII & DII Data
Foreign institutional investors (FIIs) net sold shares worth Rs 595.32 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 729.49 crore in the Indian Equity Market on August 18 as per provisional data available on the NSE.
TODAY’S TOP FIVE GAINERS AND LOSERS (NIFTY)
ANALYSIS OF TODAY’S DERIVATIVE DATA for August Expiry
As per today’s option chain data, strong resistance for nifty exists at 16600 level while as strong support exists at 16200 level. The call writing was seen at 16800, 16700 and 16800 strike prices while as no put writing seen, which in other words mean that market is preparing itself for a heavy correction.
- 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. The call writing was seen at 35700, 35800 and 36000 strike prices while as marginal put writing was seen at 35500 and 35000 strike prices, which signifies that if 35500 is broken then there will be further correction of 500 points.
MAXIMUM PAIN OPTIONS FOR August EXPIRY
Sectors to watch out for tomorrow
- Nifty Bank
- Nifty IT
- Nifty Auto
Stocks to watch out for tomorrow:
- Axis Bank- Sell between 755-760 level for a target of 740. Stoploss 765
- Jindal Steel- Sell between 408-411 for a target of 395 stoploss 415
- Ashok Leyland-Sell between 124-126 for a target of 122 stoploss 127.50
All rates mentioned above are spot rates.
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