Analysis & Key Levels for July 27, 2021

Analysis for July 27, 2021

  1. After a gap down opening of about 60 points, Nifty recovered 100 points and towards the second half of the day fell by another 60 points.

  2. The closing price of Nifty Futures was below the previous day’s closing price.

  3. 15900 continues to act as a strong resistance.

  4. 15932 (in Nifty Futures) acts as a strong resistance on the upside. If it is broken, we can see some short covering which could propel the markets towards 16000.

  5. Reliance & HDFC twins are dragging the market down. If they rebound, the market is likely to scale 16000.

  6. India VIX was up by 5.8%. Options sellers should be careful as India VIX is near all-time lows. It could shoot up anytime.

  7. Only 20% of the stocks in the broader market ended in green. A weak day.

  8. I have been saying over the last 2 trading days that Nifty Next 50 looks strong. Even today, Nifty Next 50 ended in Green. Nifty 50 and Nifty Midcap ended in red.

  9. METAL stocks continue their good run from last week ending 0.63% higher.

  10. Energy stocks, PSU Banks and AUTO stocks were the worst performers today. All 3 sectors have not been doing well in the last 1 month. Avoid bullish trades in these sectors.

  11. US market is trading slightly in green as I am writing this. European markets ended mixed. European markets actually started in red, but managed to end in mild green.

  12. FIIs sold for 2377 crores and DIIs bought for 1551 crores. FIIs are selling for 2000 crores once in 3 days.

  13. But this time, they have reduced their short positions on the Index. Last week, they had around 55% short positions on the Index. Now it is down to 52%. This is a good sign.

  14. With respect to Open Interest, 15900 and 16000 have huge CALLs built. If the price crosses 15932 in Nifty Futures, it might induce some panic. CALL sellers might start closing their positions which might lead to the next up move.

  15. For the first time in the last few weeks, market participants have built PUTs confidently at 15800 and 15700. This shows that participants are still moderately bullish on Nifty.

With this, we head on to the key levels for tomorrow.

Key Levels for Nifty Futures

  • Bulls to control above 15861. Targets on the upside are 15879, 15897, 15917.

  • Bears to control below 15826. Targets on the downside are 15796, 15771 & 15742.

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)

All these 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.

What is your market view for July 27, 2021 with respect to Nifty?

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

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