The previous week Nifty shot up nearly 300 points. Nifty made record highs over the past two weeks. After a consolidation for more than a month, it's nice to see the market making record highs. Nifty closed above 16,500. Although Nifty made record highs only a few stocks shot up. The past two weeks midcaps and smallcaps underperformed.
Last week both FIIs and DIIs were net buyers. FIIs have bought for more than 878 crores and DIIs have bought around 635 crores in the cash market. Markets are at all-time high and when both of them are still net buyers, it indicates the bullishness of the market.
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Nifty is above 16,500 and still bullish but for at least for the next few days markets may consolidate. There is a slight fear of COVID but overall the market sentiment is positive. Currently, the PCR of Nifty is 1.79.
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(chart from www.tradingview.com)
In Nifty, 16,500; 17,000 have the highest open interest on the call side and on the put side, 16,000 has the highest open interest in the August month expiry. In the current week expiry, the 16,800 call and 16,400 put are having huge open interests.
In Nifty Bank, 37,000 has the highest open interest on the call side and on the put side, 35,000 has the highest open interest in the August month expiry. In the current week expiry, the highest open interest is at 36,500; 37,000 on the call side and 36,000 and 35,500 on the put side.
Global markets are mixed, SGX Nifty is positive but flat.
Finally to conclude,
- Nifty may consolidate this week.
- Nifty may trade between 16,300 and 16,800.
- Avoid lump sum investing at this time since markets are at all-time high.
- Must watch the performance of stocks other than index heavy weights.
You can check the FII long and short data, FII DII net sales, open interest data, Global markets data, on the "Quick Bites" page. Click here and check now.
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