Nifty - Technical Analysis:
- Nifty formed a double top pattern in hourly charts and 10880 will now act as a strong support which, if breached, can lead to a further correction in the index.
- On 15 minute charts, Nifty gave a failed breakout out of the 11100-11300 range and also the upward channel.
Market - Driving Factors:
- All sectoral indices ended in the green today with Nifty Pharma leading the pack after it ended 5.37% in the green. The new US FDA directory which urges Americans to use locally manufactured medicines might not have a big impact on Indian Pharma companies.
- Prestige Estates rose over 8% today on news that blackstone will acquire the commercial real estate assets of the company.
- Yes Bank once again hit the upper circuit and ended 5% up. One would've made an 18% return in 2 weeks if they has subscribed to the Yes Bank FPO and held the shares till today.
Nifty - Outlook for Tuesday, 11th August:
- Titan just announced its Q1 earnings and the company posted a loss of 270 crore rupees which was worse than what analysts had expected. This might weigh on the stock tomorrow.
- ADX shows no strength of momentum on either side indicating that markets might consolidate for a while before giving a breakout in either direction. So one should avoid large directional bets on weekly options which expire this Thursday.