MARKET OUTLOOK FOR 26th August 2021

TODAY’S MARKET SNAPSHOT:

Nifty closed the trading session on August 25 on a flat note. The short covering rally on nifty enabled it to make another all time high in today’s trade. Tomorrow the nifty is likely to remain in a volatile zone throughout the trading session. Nifty is looking overbought on daily charts and as such a correction of 2-3% is most likely to happen in coming sessions. My suggestion is to close all long positions and remain in a wait and watch mode for next trading sessions. As tomorrow is the monthly, hence volatility will be very high on both sides. Technically nifty may end August Expiry below 16750. Be stock specific for next few sessions.

Bank nifty is looking very weak on daily charts. Bank nifty has to hold 35300 tomorrow for any sustainable up move. If bank nifty fails to hold 35300 tomorrow, then it is likely to breach 35000 and may even hit 34800. Avoid banking stocks for the time being.

The derivative data on both nifty as well as bank nifty is negative.

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

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 16700 level while as strong support exists at 16600 level. The call writing was seen at 16700, 16800 and 17000 strike prices while heavy put writing was seen at 16500 strike price which in other words mean that nifty is likely to expire tomorrow between 16500-16700 level.

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. call writing seen in today’s trade at 35700, 35800 and 35900 strike prices while no significant put writing visible in today’s trade, which means that bank nifty is likely to head southwards tomorrow and is likely to expire between 34800-35700 level.

MAXIMUM PAIN OPTIONS FOR August EXPIRY

Sectors to watch out for tomorrow

1. Nifty OilGas

2. Nifty Metal

3. Nifty FMCG

Stocks to watch out for tomorrow:

1. ITC – Sell

2. Tata Motors- Sell

3. Bharti airtel- Buy

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