Analysis & Key Levels for July 28, 2021

Analysis for July 28, 2021

  1. After the first 2 hours of today’s session, Nifty broke below the Open price. This was the first indication of bearishness.

  2. Yesterday I had mentioned that Bears are likely to take control below 15826 in Nifty Futures.

  3. Once the price went below the Open price and below 15826, there was a free fall of about 100 points. All 3 targets on the downside were met.

  4. Even today, Nifty Futures did not close below 15700 despite the fall. Remember, in the last 8 weeks Nifty Futures has not closed below 15700 in the Weekly chart. Hence, it is a very crucial level.

  5. The Index was dragged down mainly because of Pharma Stocks particularly Dr Reddys, Lupin & Aurobindo Pharma. The Nifty Pharma Index was down by 4.33%.

  6. As expected, India VIX is above 13 now. Options premiums in the far month have shot up.

  7. Only 20% of the stocks in the broader Index ended in green.

  8. Surprisingly PSU Banks ended in green. METAL Stocks continued their good run.

  9. The US and European markets are currently in red. China’s tech stocks are down severely. This is affecting tech stocks in other markets as well. Nasdaq is down by almost 1.8% whereas the DOW is down only by 0.5%. Nasdaq is tech-heavy.

  10. FIIs sold for 1459 crores and DIIs bought for 730 crores. FIIs have increased their short positions on the Index too. Not a good sign.

  11. With respect to Open Interest, there is a huge CALL build-up at 15800, 15900, and 16000. Over the last few days, the build-up was high only at 16000. But today, CALLs were added at 15800 and 15900 as well.

  12. It looks unlikely for the market to even break 15800 before this expiry given the OI buildup.

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

Key Levels for Nifty Futures

  • Bulls to control above 15759. Targets on the upside are 15778, 15796, 15819.

  • Bears to control below 15704. Targets on the downside are 15680, 15647 & 15625.

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 28, 2021 with respect to Nifty?

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

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Kindly add current premium price details with open interest chart, i hope its added advantage. Thank you.