Analysis & Key Levels for August 04, 2021

  1. For the last 2 weeks, I have been saying that 15932 is a key level.
  2. Today, Nifty Futures opened at 15947 and then took support at 15932.
  3. The first bullish momentum candle (in 5 mins chart) started from 15932 and then there was no stopping Nifty.
  4. There was a 230 point move from there and the market ended at 16151.
  5. If you look at the broader market, only the Nifty 50 stocks have given a good move.
  6. 240 out of the 500 stocks in the Nifty 500 have ended in red, whereas 44 out of 50 Nifty stocks have ended in green.
  7. India VIX has also shot up by 7% despite the up move. Usually, when the market moves up volatility cools down. But, today it shot up. It could be because of the upcoming RBI event as well.
  8. Reliance and HDFC twins alone contributed 55 points to the Nifty today. As I mentioned earlier, without their help it would be difficult for the Index to break new barriers.
  9. European and US markets are trading mixed as I am writing this.
  10. After 2 weeks, FIIs have net long positions on the Index and they have bought for 2117 crores in the cash market.
  11. 16000 saw a huge CALL addition today and there is a huge CALL build-up at 16000 as well. So, it is unlikely for the market to trade below 16000 in this expiry. But, this is based on the current build-up only. The situation could change in a day.
  12. As a trader, we should not predict what is going to happen. We need to focus on what is happening right now and see how well we can adapt to it.

With this, let us move to the Key Levels.

Key Levels for Nifty Futures

  • Bulls to control above 16130. Targets on the upside are 16163, 16201, 16250.

  • Bears to control below 16095. Targets on the downside are 16053, 16030, 15999.

Note: The levels are based on Nifty Futures chart. Click here to see how to use the Key Levels.

Nifty Futures Chart (5-minute Timeframe)

What is your market view for Aug 04, 2021 with respect to Nifty?

  • Bullish
  • Moderately Bullish
  • Sideways
  • Moderately Bearish
  • Bearish

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PS: All the data points are available in the Finvezto App. Check out the App here.

If you are looking for Banknifty, Reliance & Infosys Key Levels, please check here.

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