Hello,
Nifty while closed weak on Friday did not break below our lower range of 5350. This coupled with the fact that US Markets bounced back from the lows of the day and Futures being currently strong means that we shall yet again test and maybe move above the 5400 level. As mentioned for a breakout to happen, 5475 is now the new level to watch out for since the heavy choppiness at 5400 has meant a erosion of it either being a support or a resistance.
FII's during the month of July invested a total sum of Rs.8320.51 Crores in the Equity Markets but with Domestic Institutions being heavy sellers to the tune of Rs. 6323.15 Crores in July, markets were kept in a range out of which it could not come out. Whether such counter trades shall continue even this month is a difficult task to guess but it seems unlikely.
Option Open Interest indicates a resistance at 5600 level with support at 5300 level thus setting the initial range for the market. With Volatility being pretty low, chances of a breakout seem lower than a breakdown and even the range seems to indicate a bit of downward bias rather than upward. Nifty Put Call ratio for Friday was at 1.41
Regards
Prashanth
Mythri Stocks & Shares Pvt Ltd.,
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