MARKET OUTLOOK FOR 23rd August 2021

TODAY’S MARKET SNAPSHOT:

Nifty closed mildly negative for the week ended August 20 and formed a shooting star candlestick pattern which is a bearish sign. Nifty outperformed all the major indices globally in the week gone by but shooting star pattern on weekly charts hints at a mild retracement towards the short term averages. There could be a dip towards 16150. Traders are advised to remain short on nifty. If Nifty breaks 16150 on closing basis, then it is likely to open doors for 15800 levels. Be stock specific. As it is an expiry week, hence volatility will be high on both sides.

Bank nifty is looking very negative from these levels. One should book profits at these levels. If bank nifty breaks 34800 on closing basis, then it is most likely to hit 34200 in next few sessions. Avoid bank nifty as heavy correction is likely to continue in the ensuing week.

The advance decline ration stood in the ratio of 1:7

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 16500 level while as strong support exists at 16400 level. The call writing was seen at 16500, 16600 and 16800 strike prices while the mild put writing was seen at 16400 which signifies weakness in the market.

2. Bank Nifty

As per today’s option chain data, Strong resistance for bank nifty exists at 35500 level while as strong support exists at 34500 level. Significant call writing seen in today’s trade was seen at 35100, 35200 and 35300 strike prices while  put writing seen in today’s trade at 35000 and 34500 strike prices.

MAXIMUM PAIN OPTIONS FOR August EXPIRY

Sectors to watch out for tomorrow

1. Nifty FMCG
2. Nifty Bank
3. Nifty Metal

Stocks to watch out for tomorrow:

1. Tata Steel – Sell
2. Bharat Forge- Sell
3. Apollo Hospital- Sell

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