Welcome to our Monday Market Predictions for the session on August 28th, 2023. As we analyze the data and trends for the week ahead. Now, let's dive into what the data suggests for the upcoming Monday session
Retailers Show Confidence:
On the last trading day of the week, retailers made a bold move. They not only engaged in significant call buying and increased their put writing. Their actions suggest that the market might move upwards from its current support zone.
FIIs Paint a Different Picture:
Contrastingly, the Foreign Institutional Investors (FIIs) seem to be adopting a bearish stance, both in equity and options markets. Net FIIs data is indicating an increasing bearish sentiment. Their strategy involved substantial call writing and put buying, implying an expectation of a market downturn.
NIFTY :
Now, let's delve into the specifics. For NIFTY, the current Put-Call Ratio (PCR) stands at 0.66. A closer look at the option chain reveals substantial call writing at 19,300 and 19,400. This suggests that 19,400 could serve as a robust resistance level in the upcoming Monday session. Furthermore, there has been a decrease in put positions, indicating a lack of confidence in an upside move.
Nifty Important LevelsBANK NIFTY:
Shifting our focus to BANK NIFTY, we find a similar scenario with a current PCR of 0.79. Key levels to watch are 44,300 and 44,400, where significant call writing has occurred. Consequently, 44,500, a rounded-off level, could emerge as a formidable resistance point. People are not feeling very confident about the market going up because they're closing out their put positions.
Bank Nifty Important LevelsConclusion:
Retail investors are feeling positive, while big institutions are cautious. The options market suggests that some levels might act as resistance, and people aren't too sure about a big upward move.
Please be aware that investing in the stock market, including Nifty and Bank Nifty, comes with risks. The predictions we share here are for informational purposes and should not be considered financial advice. Invest wisely and at your own risk.