Cues for Today

🔴MARKET SENTIMENTS- Consolidation to volatile- ( subdued addition of OI in index futures by FIIs and technically again the market are back in the range despite a good breakout above 14900, but there was no significant volume participation to lift the index)

■ Global Market update

- Dow down 473 pts
- Nasdaq down 12 pts
- Hang Seng up 28 pts
- Dow fut down 117 pts


● Growing inflation fear knocked US markets lower as any significant acceleration of inflation would be a drag on the overall market & Economy

● A wave of new restrictions is spreading across Asia, Taiwan announced limits on crowds, Singapore is also limiting gatherings & restricting entry of foreign workers.

● Today evening US will declare its Inflation data. That will be watched very closely for any clue about future interest rate direction.

● Stock specific action is likely to continue due to MSCI rejig. Many stocks are added and few got deleted from MSCI index.

● Tomorrow is trading holiday, so friday we may see a huge movements in the indices if today they remain calm.

📊 Huge OI added at 15000CE and above.
>>Moreover 14900 straddles which were very active day before yesterday shifted to 14800 straddle. Nifty 14800 straddle premium is about 150.>
So Nifty is likely to expire between 14650 and 14950.
>> Huge Short covering in 14900PE also indicates that upside is capped for today.

>>FIIs have shifted their positions to short, as the long / short ratio is 0.76 in indices futures.
>> But the Options data doesn't seem that bad for sell side as they increased their short positions on Put side compared to call short.

>> So overall it looks like the market may stay volatile and today we may not see any aggressive move one-sided.

📉📈Technically in Nifty, suggests that it might not correct below 14600 levels in hourly charts,
The index failed twice in the recent consolidation trend to stay above 14900, - a completion of double top chart pattern may only trigger the seller and would dominate later.
>> But the good thing is that nifty is managing to stay in the upper half of the consolidation range of (15000- 14200).

●Nifty Intraday levels
>> Support/ resistance- 14830-14740-14660

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Weekly Report -NIFTY TECHNICAL OUTLOOK
16 MAY 2021