Broader market outperforms; Zomato gains over 3 per cent
Market Update at 11:34 AM: The Indian markets were seen trading with modest gains on Monday. Nifty is just holding above the 15,850 mark while Sensex is trading above its important psychological mark of 53,000.
The broader markets are seen outperforming the frontline gauge with Nifty Midcap 100 and Smallcap 100 gaining 0.46 per cent and 0.32 per cent, respectively. The advance-decline ratio is in favour of advances.
Meanwhile, the debutant of stock exchange i.e. Zomato, which was listed on Friday, is seen buzzing on the bourses as it's up by over 3 per cent.
Nifty ended the week of July 23, 2021, in high spirits, as it had registered a close above the 15,900 mark on a weekly closing basis, signifying that it has eventually broken out of consolidation phase and it is all set to take off after a period of prolonged consolidation. However, fragile cues from the global markets threw cold showers on the bulls as the domestic markets took a toll with bears logging a hat-trick of losses. In addition to this, what was more striking was the fact that India VIX jumped sharply in the earlier part of the week and with the bulls making a comeback, it cooled off substantially.
On a weekly basis, Nifty ended the week with a net loss of 0.59 per cent. The broader market also ended the week in red with Nifty Midcap and Smallcap losing 0.87 per cent and 0.16 per cent, respectively.
Today, the index heavyweights will set the tone of the markets as the market participants will first react to the results of the heavyweights i.e. Reliance Industries and ICICI Bank. Also, the value-stock ITC would also remain in focus as it showed a decent momentum in the final trading session of the week while the stock came out with its quarterly earnings during the weekend. Talking specifically, the level above 15,950-16,000 is a strong barrier while 15,550-15,600 is good support.
Meanwhile, the RSI faced resistance at the sloping trendline for the third time. The daily ADX is at 9.44, showing that there is no strength in the trend. As consolidation in a tight continues, none of the indicators show any significant strength in the current market condition.
Taking cues from the option data, an immediate and important support for the index stands at 15,800 as on Friday, 15,800 put strike saw the addition of 18.76 lakh shares in the open interest. With this, the total open interest in the 15,800 put strike has reached 44.39 lakh. On the upside, a maximum concentration of open interest is seen at 16,000 call strike as it has open interest of 61.2 lakh share, of which, 17.55 lakh shares have been added on Friday itself. Eventually, we are back to where we were over the past several weeks. Watch out for the levels of 15,950-16,000 on the upside as this is a stiff barrier while on the downside, 15,800 is the immediate support, followed by 15,550-15,600.