View for the day - 8th July, 2020

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Market Views for the Day:

  • In lines of our expectation , the market has found a very stiff resistance around 10850 levels and got rejected around those levels third time in a row . And the Nifty has settled around 10700 levels and could be heading towards 10600 levels. (Figure 2)
  • Tomorrow is the weekly options expiry and a lot of volatility can be expected. So one should be very cautious while taking directional views on the Market
  • Bank Nifty showed a lot of strength in the first half of the day and did manage to have a crack at 23000 levels, but the momentum fizzled out and eventually did end the day in Red
  • 10500 and 10600 , have become a very strong support for market now. And it’s the pivot for the market. And on the upside 10800 is the level to watch out. For weekly options expiry, the range could be between 10600 and 10800 . And these are the strike prices which have maximum Open Interest (OI).
  • Markets started on a positive note for the day with SGX Nifty Trading in Green at the beginning of session.

Figure 1

Figure 2View

Data Points:

  • The Sensex Opened at 36738.38 and closed at 36329.01. The high for the day way 36828.43 and the low for the day was 36234.17 . Sensex lost -0.94% for the day
  • Nifty Opened at 10818.65 , the high for the day was 10847.85, and the low for the day was 10676.55 . Nifty closed at 10707.75 . Nifty lost -0.87% for the day
  • Bank Nifty Opened at 22700.90 , the high for the day was 23080.60, and the low for the day was 22499.50 . Bank Nifty closed at 22584.65 . Bank Nifty lost -0.19% for the day

Top Gainers & Losers:

  • The Sector for the day: Nifty Metal (Up 1.57%) and Nifty FMCG (0.845). All the other Indexes ended the day in Red.
  • The market Ended In Red, but the breadth was in favour of bears (14 advances, 35 declines and 1 unchanged in Nifty 50)
  • The Top 5 gainers (Nifty 50) for the day were- IndusInd bank, VEDL, JSW Steel, Hindalco, Dr. Reddy
  • The Top 5 losers (Nifty 50) for the day were – Bajaj Finance, ZEEL, Asian Paints, TATA Motors, HCL tech

FII & DII data:

The Net FII selling for the day was 994.87 cr . The Net DII selling for the day was 853.41 cr.

Views for tomorrow:

  • The Marked did start on a positive not and made a new recent high, but the momentum soon fizzled out and the call option writers near 10850 levels, kept selling pressure on the market
  • In Nifty, the levels to watch out will be 10800 on upside and 10550-10600 on the downside. This could also be the range for tomorrow.
  • Tomorrow weekly options expiry could play a key role in deciding the range for next few days. Expiry below 10600, most likely opens door for 10400 or lower. And if the expiry happens near 10800, the next likely targets will be 11000 levels.
  • For Nifty, the important levels are 10800 & 10950 (upside) and 10600 (downside)
  • For Bank Nifty the important levels to watch out on upside are 23000. The important supports are at 22000

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