- The week started with a negative open of Nifty with getting to -100 within first hour of trading.
- This was then followed by consolidation at lower levels and we saw some short covering as Nifty traced back upto 11380 levels during trading session.
- Overall, if we observe there was consent of market around our previous analysis where we predicted that 11300 level won’t be broken easily.
- From market data perspective, FII were still in selling mode in cash but their sell numbers were out-performed by DII buying.
- Adding to this, Reliance which is big contributor to the index, also gained 2.33% and went from low levels of 1227 to 1280 during the day.
- Below are the FII numbers to consider:
Equity : -1916.61 Crore
Index Future : -1,086.12 Crore
Index Option : 559.11 Crore
Stock Future : 717.92 Crore
Stock Option : -5.15 Crore
- So overall, FII numbers aren’t very positive and this can be linked with the taxation changes announced in budget.
- Overall, the width of market is not looking very positive or promising.
- Today, Reliance was able to save the index to an extent.
- Since HDFC and HDFCBANK both are going down as FII are reducing their stake, index will not recover unless their trend changes.
- From an expiry perspective, I think 11300 won’t be broken atleast tomorrow as heavy writing was seen on this level.
- Similarly 11400 would be an immediate resistive zone from option data analysis.
- Overall, I would expect market to try and break 11400 tomorrow.
- So it would be a good bet to go positive at around 11300 level with a strict stoploss of around 11275 level for a good 100-150 points rally.
- One can start booking profits in long at around 11380 level and if 11400 is broken on upper side, 11450 will seen in matter of few minutes.
- Trend Line Trading : Guide to Perfect Entry and Exit Point
- NIFTY Analysis for 24 July 2019