MARKET OUTLOOK FOR 25th August 2021

TODAY’S MARKET SNAPSHOT:

Nifty closed the trading session on August 24 on a positive note. Today nifty closed higher on account of short covering by market participants. Nifty formed a long bullish candle on daily charts today which is a positive sign. Tomorrow the nifty is likely to continue its positive momentum. Once nifty breaks 16640 on closing basis, then decks will be cleared for reaching 16850 in next few sessions. My suggestion is to close all long positions and remain in a wait and watch mode for next two trading sessions. As this is an expiry week, hence volatility will be very high on both sides for next two trading sessions. Technically, nifty may end August Expiry below 16750. Be stock specific for next few sessions.

Bank nifty has negated all the bearishness today. Since bank nifty is trading above 35000 from last few sessions, hence there is high possibility of reaching 36000 in next two sessions. Today’s rally is majorly attributed to short covering by market participants. Avoid bank stocks for next few sessions.

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

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 16800 level while as strong support exists at 16500 level. The call writing was seen at 16800, 16900 and 17000 strike prices while heavy put writing was seen at 16600, 16500 and 16400 which signifies strength in the market.

2. 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. No Significant call writing seen in today’s trade while put writing seen in today’s trade at 35500, 35400 and 35300 strike prices.

MAXIMUM PAIN OPTIONS FOR August EXPIRY

Sectors to watch out for tomorrow

1. Nifty Metal

2. Nifty Bank

3. Nifty Infra

Stocks to watch out for tomorrow:

1. Biocon – Buy

2. Adani Total Gas- Buy

3. Wipro- Buy

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