Equity_Compound_2

Market Report 6th Aug'2021 (Evening)

NSE:NIFTY   Nifty 50 Index
Nifty
Nifty on Friday opened marginally up, lost some ground and then again rose to make a intraday high of 16336 before closing at 16252, making a bearish inside candle on the daily chart .
Important is that the low of Thursday at 16210 was protected, indicating some strength at this level. Now we need to watch for an immediate short term perspective a breach of this candle on either side.
A breach on the higher side may expand the Index to previous high of 16380 and then if this is taken out, we may see 16400-16450 level.
A breach on the lower side, may trigger a sharp correction towards 16000 level.
Bank Nifty
Bank Nifty also opened slightly higher and then was sold off to make a low of 35700, it could not regain the opening level through out the day and could only close at 35809, making a bearish inside candle on the daily chart .
Again on Bank Nifty the Thursday low of 35661 was protected. Though the index is showing weakness as compared with Nifty , it is indicating support at 35700 levels.
A breach on the higher side now may move the index up towards 36200 levels and a breach of this may elevate it to 36500 level.
A breach on the lower side may start seeing the index moving towards 35450 level.
FII on Friday did not sell much, rather in turn the DII sold for a good 630Cr. So a slight change in their stance. Though on the future side, FII were bearish and created 6300 shorts against a small long unwinding.
FII also sold around 25000 calls against some 7000 puts. So at least on the F&O side their stance continues to be bearish .
The options OI indicate support at 16200 and a resistance at 16400 for Nifty and support at 35500 for BankNifty and resistance at 36000 for Bank Nifty .
Support
Nifty
First support at 16200
Second support at 16000
Bank Nifty
First Support at 35600
Second support at 35200
Resistance
Nifty at 16380
Bank Nifty at 36200
Globally there was nothing much in the European or Asian markets. The Asian markets closed marginally in red and Europe closed in green with no great movements.
The economic data coming in last week was mixed. Caixin PMI was negative, German and British manufacturing PMI was strong and US was negative, The US no farm job data was weak, US initial jobless claims was negative, while the Non farm payrolls and and unemployment rate as positive against the estomates.
Watch for the following in the coming week. German economic sentiment on Tue, US core CPI on Wed, British GDP and US PPI and initial jobless claims on Thu.

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