MARKET OUTLOOK FOR 27th August 2021

TODAY’S MARKET SNAPSHOT:

Nifty closed the volatile monthly expiry trading session on August 26 on a flat note and formed a Doji Pattern on daily charts. Tomorrow nifty is likely to continue its subdue performance. Unless nifty doesn’t close above 16700 level, one must exit all the long positions on nifty. On the downside, 16480 is a major support falling which can lead to levels of 16400 and below. Overall data looks highly indecisive. Traders are suggested to remain in a wait and watch mode till nifty doesn’t cross the mentioned levels. Overall stature of nifty looks negative.

Bank nifty closed the monthly expiry session on a positive note. Bank nifty is looking very weak on daily charts. One must avoid banking stocks for the time being. Traders are suggested to maintain a sell a rise strategy on bank nifty. Bank nifty has to close above 35700 for an upward move of 36200. On the downside, if bank nifty fails to hold 35380 tomorrow, then traders are advised to initiate short positions on bank nifty for a target of 34800 in next 2-3 sessions.

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

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

TODAY’S TOP FIVE GAINERS AND LOSERS (NIFTY)

ANALYSIS OF TODAY’S DERIVATIVE DATA for September 2 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.

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.

MAXIMUM PAIN OPTIONS FOR September 2 EXPIRY

Sectors to watch out for tomorrow

1. Nifty Bank

2. Nifty Pharma

3. Nifty IT

Stocks to watch out for tomorrow:

1. Adani Power – Buy

2. Future Retail- Buy

3. Nalco- Sell

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