Pre Market Analysis

27 July 2020

Important Price Levels for Todays Trading

PDH/22871

PDC/22614

VWAP/22554

PDL/22345

Yesterday was a bearish day for the Bank Nifty right from the beginning. We saw a Gap Down opening and price testing all the Pivot Support levels
as shown in the graph. All major price levels were taken out with volumes and thus giving good opportunity for sell on every rise for scalping. After 2
PM there was strong retracement as well as price bounced back from S4 levels to S2 levels but finally closed below it. SO the bullish momentum
had a pitstop yesterday. Now all the important price levels of Yesterday need to be watched out for today’s trading.

1. Previous Day High. :22871 (22901 on NSE)

2. Previous Day Low. :22345 (22321 on NSE)

3. Previous Day Close :22614

4. Previous Day VWAP :22554

Also Pivot points for today will be

Thus important action may be seen while the price is around thee levels.

So we may see high movements if price crosses 23250 levels on the upside and 22280 on the downside.

Analysis of Daily Chart

As can be seen Banknifty is taking resistance at the trend line. 22100 levels is the weekly low and also S3 levels for today and also around 20 MA.

The price may take support here on downside and on upside 23250 ie above R3 there is trend line Resistance near R4 of 23360 levels.

So these two price levels form major levels for upside and downside resistance and support.

So these price levels need to be watched out carefully during the day.

Analysis of Spot and Future

PRICE LEVELS BANK NIFTY FUTURE NEAR

BANK NIFTY SPOT
MONTH

OPEN 22853 22850

HIGH 22854 22901

LOW 22417 22321

CLOSE 22676 22614

LAST PRICE 22662 22611

Open Interest Last 30 min’s NA DECREASE

Overall OI DECREASE

At days low there was massive bearishness of around 100 points indicating the prevailing Bearish sentiment of the day. AT the closing too the
sentiment is too bearish.

 FUTURE ANALYSIS

BANK NIFTY FUTURES ANALYSIS

DATE OPEN HIGH LOW CLOSE SETTLE PRICE OPEN INTEREST CHANGE IN PRICE CHANGE IN OI INFERENCE

24-Jul-2020 22850.00 22901.05 22321.00 22611.30 22611.30 1408000 -2.10% -9.31% LONG LIQUIDATION

23-Jul-2020 22765.35 23140.00 22703.50 23095.25 23095.25 1552475 1.28% -5.15% SHORT COVERING
22-Jul-2020 23124.95 23148.55 22573.70 22803.80 22803.80 1636775 -0.05% 5.74% SHORT BUILT UP

21-Jul-2020 22620.00 22899.70 22512.00 22815.75 22815.75 1547900 2.37% 3.41% LONG BUILT UP

20-Jul-2020 22230.95 22474.00 22122.35 22287.30 22287.30 1496875 1.44% 1.87% LONG BUILT UP

17-Jul-2020 21459.45 22081.00 21459.45 21971.10 21971.10 1469400 1.85% -2.19% SHORT COVERING

16-Jul-2020 21400.00 21647.50 21025.05 21571.30 21571.30 1502350 1.17% -5.53% SHORT COVERING

15-Jul-2020 21645.20 21940.00 21212.10 21320.95 21320.95 1590350 -0.35% -2.24% LONG LIQUIDATION

14-Jul-2020 21942.50 21944.00 21212.90 21396.50 21396.50 1626850 -3.51% -6.97% LONG LIQUIDATION

13-Jul-2020 22625.00 22664.40 22028.00 22174.55 22174.55 1748750 0.00% 0.00% REFRENCE

23148.55 21025.05

This speaks volumes. There has been a strong long liquidation suggesting the bullish momentum is not likely to continue and we may either
consolidate or head downward for the moment. Profits have been booked at higher levels.

 OPEN INTEREST ANALYSIS

Starting from 23000 levels there is strong Short Built up suggesting that up move above 23000 is highly unlikely for the day.

On the Put side there is not considerable built up. However some buying taking place around 22300 levels. ITM Puts are being covered. So this may
suggest no up move at all and possibly downward consolidation.

Overall the OI data suggests that upmove above 23000 is not likely today and 22000 is going to be a good support as these levels have highest OI.
So we may see some consolidation today.

FII Analysis

FII’s have decreased their money inflow into the market. But the future data suggests that they have significantly covered their Long positions which
is certainly not bullish. DII’s still hold their Short Position Fort while retailers have gone long. So this is certainly not bullish but points to bearishness
or negative consolidation.

In options retailer have bought sizeable CALL options and sold PUT options , PRO’s have sizeable LONG Put options.

This doesn’t look bullish.

World Markets

1. DOW JONES SPOT

Important points to consider:

a. Pandemic is worsening in US

b. Dollar is getting weak

c. Gold prices as a safe haven have increased

d. Escalation of Sino-US Tension

So Dow took a fall and this may get reflected in world markets today.

2. DOW JONES FUTURE

At 7.30 AM DOW Jones is a bit positive flat at +115. So this will have to be watched out.

3. HANGSANG
4. NIKKEI

5. SGX Nifty

Summary

• So overall the data signals are a bit negative today.

• Price levels especially Low and High of Yesterday and day before yesterday will be important levels to be watched today and action may be
witnessed once we cross them on either side.

• FII’s seem to be giving up their bullish positions but DII’s are Bearish strongly.

• Retailer have bought CALLs/Shorted PUTS and PRO’s have bought PUTS strongly.

• World Markets are positively neutral today after DOW’s fall and as SINO-US tension rises it may see some contraction. Any rise in world markets is
not likely today and so may our markets.

So today our markets at best may play within important price levels as mentioned earlier. However if these levels are crossed then we may see some
quick moves. So it has to be observed.

Happy Trading

Regards