Global cues:
• Strong earnings from U.S. technology firms drove Wall Street higher on Friday.
• Shares in Europe slid on Friday on doubts about the economic recovery from the coronavirus pandemic.
• Investors will be eyeing macroeconomic data from world's largest economy, US, starting with PMI data followed by Redbook on August 4, balance of trade, export and import, Markit Services PMI on August 5, jobless claims on August 6 and finally unemployment rate on August 7.
Indian markets:
• Indian indices gave up gains, Sensex & Nifty lose 1% each, Nifty Bank down 4% this week
• FIIs were net buyers of worth Rs 2490.19 Crore and DIIs were net seller of worth Rs. 10007.88 Crore for July 2020
• Reserve Bank of India's money policy review, macro-economic data and June quarter earnings are likely to emerge key drivers for stock markets in August.
• Nifty Pharma gains most among sectoral indices after a surge in pharma stocks for last 2 sessions. 3 out of 5 top Nifty gainers this week are pharma stocks.
Trends:
• Nifty ended lower for the third day in a row on Friday and formed a small-bodied bearish candle on the daily chart, indicating selling pressure at higher levels.
• It closed below its immediate support level at 11,080 and formed a bearish candle on the daily and weekly charts. The index is in the overbought zone and its upside looks largely capped. A breach of the 11,000 level could trigger a near-term correction.
• Monthly and weekly Heikin candlestick patterns are flat bottom with higher high formations suggests prices can still trade higher towards previous swing pivot standing around 11,350 mark.
• Markets setup looks bearish for the coming week. As almost all big companies have announced their results, Markets will likely to follow global cues.
• Expect some profit booking in IT sector as it is trading at very high valuations now, which In turn can drive down Nifty.
• On weekly basis Nifty’s support is at 10950, if that breaks then it can fall till 10850.
• Nifty’s expected range for the next week is 10800-10300.
Option strategy for tomorrow:
• Nifty’s short-term trend is slightly negative amid a rangebound movement, but slight bounce cant be ruled out. Our view on market is still sell on rise.
• Nifty is sell below 11050 and buy above 11100.
• Nifty’s expected range tomorrow can be 10950 and 11200.
• Upside resistance is at 11000 and 11200 levels.
• Downside support is at 11040 & 10950 levels.
• Maximum call OI of 20.03 lakh contracts was seen at 11,500 strike which will act as crucial resistance for August Series
• Maximum put OI of 32.84 lakh contracts was seen at 10,850 strike which will act as crucial support for August Series.
Stock picks of the day:
• Stochastics show BPCL in a overbought category. Expect the stock to show some weak structure. Sell the stocks till 400 levels
• Airtel formed indecisive candle in the last one hours of trade on Friday. Expect the stock to test 546 levels
• RIL showed some weak structure on Friday. MACD and stochastics show the stock in overbought category. Expect the stock to test 2,035 levels
• Infosys has been forming bearish candles for the last 2 trading days. Expect the stock to test 946 levels
Results on July 29:
TRF, Dhanlaxmi Bank, Exide Industries, Solara Active PharmaSciences, VST Industries
Source: moneycontrol
Disclaimer
Please note that all the recommendations/views/ levels we provide are based on the theory of technical/fundamental analysis and personal observations. This does not claim for sure/ certain profit or any fix returns. we are not be liable for any losses you make on the given takes and levels. You are advised to take your position with your sense, discretion and judgment. only you would be responsible for outcomes of your trades
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