Nifty has formed a Doji Candle on the monthly charts , and a bearish candle in the weekly charts. Todays option data suggests strong resistance at 15800 and 15900 where maximum calls are written for 1st July 2021. Today nifty started off well but gave in the second half co-incident with the highest liquidity of American & European markets , following which FII sold over 1600 crores in Cash market and 500 crores in Futures market , this stock selling was bought in by DII at 1520 crores making a net selling of 100+ odd crores in the broader market.
If you compare this amount with the VIX ( Average today at 12.97) , the amount is negligible . Today the selling could have come because of tax purposes too , considering the year ending ( many tax heaven countries consider them ) . But this is purely our speculation
Our recommendation will be to wait and watch for first 15 mins of the market and then take a call , if market sustains 15760 levels , then buy 15800 CE , we expect market to close above 15850 if 15760 sustained for first 15 mins of the trade. Since its expiry please trade with a 25%-30% Stop loss limit
Except March 2020 ( the pandemic year ) , nifty has given good returns every time its closed with a Doji on a monthly candles , this time story is different as the market has already seen a sharp run up in this quarter.