- Today (July 19) the market gapped down by about 160 points, shot up by 60 points, fell by another 130 points, and then finally shot up 60 points. A volatile day. The close price was near the open price. Hence, today’s close becomes a critical level for tomorrow’s trade.
- Even during such a volatile day, Nifty gave us a few clear signals.
- Nifty Futures has not closed below 15700 since June 23, 2021 (almost a month). So 15700 will be a critical level to watch on the downside.
- On a day like this we would naturally expect the India VIX to shoot up. India VIX was up by 8.33%. It was not a surprise as we did mention in yesterday’s analysis that India VIX is near its all-time lows and it could shoot up this week.
- All broad market indices ended in red. But, Nifty Next 50 showed some strength. Nifty 50 and Mid Cap 50 fell by more than 1%, but, Next 50 fell only by 0.65%.
- Realty Sector continues to rock. Realty and Pharma are the only 2 sectors to close in positive today.
- Some sub-sectors such as Sugar (+2.15%), Healthcare (+0.92%), Electronic Components (2.02%) were up significantly.
- Banks, Financial Services, Metal & Auto took the worst hit today.
- The European Markets are in deep red with a fall of about 2 to 2.5%. European stocks slump as travel-related stocks tumble on virus concerns.
- The Dow Futures is also down by 500 points as I am writing this.
- FIIs have sold heavily for -2198 Crores and DIIs have bought for 1047 Crores.
- There is huge CALL option build-up at 15800, 15900, and 16000. Today more CALLs were added at 15900. Market participants are expecting the market to trade below 15900 till this expiry.
- PUTs were also closed at 15900. This indicates weakness.
- FIIs hold more short positions (54.7%) than long positions (45.3%) which is an indication of further weakness.
Please find below the key levels for tomorrow.
Bulls to regain control above 15765. Targets on the upside are 15795, 15816, 15847.
Bears to stay in control below 15726. Targets on the downside are 15706, 15684 & 15660.
Note: The levels are based on Nifty Futures chart. Click here to see how to use the Key Levels.
All these data points are available in the Finvezto App. Check out the App here.
- Moderately Bullish
- Moderately Bearish