Daily Stock Market Report: August 22

Indian stock markets are at a crucial support level, and a flat opening tomorrow might lead to a down move, as per the heavy CE writing data.

Daily Stock Market Report: August 22

The Nifty50 opened today with a gap up of around 23.50 points (0.12%). Throughout the day, the market remained sideways, just as mentioned in yesterday’s report, and closed in the red with a marginal gain of 0.01%.

In the daily chart, the Nifty 50 seems to be reversing from the falling trendline, suggesting a potential decline. Nonetheless, the support level at 19300 - 19250 remains unchanged. The question remains, can this support hold now?

The support & falling trendline is close to converging, both in the Daily and Hourly time frame and a breakout is expected soon on either side this week. This means you should keep an eye out for a large move, soon.    

Spot Signals:

Below are the Top Movers of our Live Market Feed:

  1. WEBELSOLAR (+4.97%)

2. NEWGEN (-2.76%)

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Quant Models:

Without any significant gap-up/down openings today, neither 'Quick Short' nor 'Back Up' generated any signals, as they didn't meet their Quantitative metrics.

Data Points:

NiftyCalls - Strike PricePuts - Strike Price
Max OI1940019300

The highest CE OI  (Open Interest) remains at 19400, and PE at 19300 levels.

A lot of CE positions have been added aggressively at 19400 levels. However, the 19300 OI remains unchanged on the PE side. The data looks bearish for tomorrow, considering the CE OI build-ups at 19450 & 19400 levels.

Levels Worth Monitoring Tomorrow:

To sum it up, the data suggests a bearish outlook for tomorrow. The key resistance is observed at 19450 - 19400 levels, where any potential up moves are likely to stall.

Conversely, a gap-up opening above 19400 tomorrow would favour the bulls, as the call sellers will have to unwind, which might drive the market further higher.

Nevertheless, the data seems to indicate a bearish sentiment for tomorrow. Any up move towards 19450-19400 levels would likely be an opportunity for the bears.

The day before expiry is often referred to as 'Wild Wednesdays' due to its characteristic volatility. Let's observe whether tomorrow follows suit in terms of volatility.

Disclaimer: The opinions expressed in this section are personal views and should not be considered financial advice. Please do your own research and consult with a professional before making any investment decisions.

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