The previous week Nifty was volatile and fell slightly. The midcaps and smallcaps underperformed this week also. The fall was due to the fear of the FED raising the interest rates in the US. On Thursday Indian market was closed and SGX nifty touched a low of 16.230. Then nifty opened 200 points gap down on Friday but managed to recover and stay above 16,400. The new rules by the Chinese market regulators are making the Chinese markets fall and it is also creating a ripple effect on other markets also.
Last week FIIs were net sellers and DIIs were net buyers. FIIs have sold for more than 4300 crores and DIIs have bought around 162 crores in the cash market. FIIs once again started selling continuously. This may be due to the fear of the increase in interest rates in the US by the FED.
Click here to subscribe.
Nifty is above 16,450 and the possibility of markets moving higher is less. It may take time for Nifty to cross 16,700 which was it's recent high. On Friday, India VIX was up by 8% but as long as it's below 15 it's not an issue.
(Tap on image for full-screen view)
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 September month expiry. In the current week expiry, the 16,800 call and 16,400 put are having huge open interests.
In Nifty Bank, 36,000 has the highest open interest on the call side and on the put side, 35,000 has the highest open interest in the September month expiry. In the current week expiry, the highest open interest is at 36,000 on the call side and 35,000 on the put side.
Global markets are positive. The China and Hong Kong markets are bearish, SGX Nifty is currently indicating nearly 100 points gap up opening. Currently, the PCR of Nifty is 1.05.
Finally to conclude,
- Nifty may consolidate this week.
- Nifty may trade between 16,300 and 16,600.
- 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.
Drop your views and suggestions in the comment section below.