..... . VALI disclosures . .....: 23/07/26, Market for Today

Thursday, July 23, 2026

23/07/26, Market for Today

The Nifty 50 succumbed to selling pressure, declining 0.8 percent to end just below the psychological 24,000 mark on July 22, as escalating Middle East tensions lifted oil prices to $95 a barrel. Momentum indicators signal short-term weakness in the market. The index also slipped below its short-term moving averages and the midline of the Bollinger Bands, indicating that bears are in a stronger position. If the index sustains below the 24,000 level, a fall towards 23,800 cannot be ruled out. A breach of that level may allow bears to tighten their grip on the market further. However, in the event of a rebound, the 24,100-24,200 zone is likely to act as a hurdle, according to experts.

1)Levels For The Nifty50(cmp23,996)

Resistance based on pivot points: 24,120, 24,168, and 24,246

Support based on pivot points: 23,963, 23,915, and 23,836

Special Formation: The Nifty 50 formed a long bearish candle on the daily charts after a period of consolidation and slipped below its short-term moving averages, the 100-day EMA, as well as the midline of the Bollinger Bands, reflecting bears gaining an upper hand. The RSI dropped to 48.61 and witnessed a negative crossover, while the MACD slipped further below the signal line, with the red bar in the histogram expanding further, indicating strengthening bearish momentum.

2) Key Levels For NiftyBank (cmp57,127)

Resistance based on pivot points: 57,633, 57,835, and 58,161

Support based on pivot points: 56,981, 56,780, and 56,454

Resistance based on Fibonacci retracement: 59,195, 61,717

Support based on Fibonacci retracement: 56,441, 55,742

Special Formation: The Bank Nifty declined 1.2 percent, breaking below the consolidation range of the past several sessions. It formed a long bearish candle on the daily charts, indicating increasing selling pressure. The banking index slipped decisively below its short-term moving averages and the midline of the Bollinger Bands, although it remained above its medium- and long-term moving averages. The RSI fell to 48.1 and continued to indicate a bearish crossover, while the MACD remained below the reference line, with the red bar in the histogram expanding, indicating weakness in the short term.

3) Nifty Call Option data:

According to the monthly options data, the maximum Call open interest was seen at the 24,200 strike (with 1.51 crore contracts). This level can act as a key resistance level for the Nifty in the short term. It was followed by the 24,000 strike (1.34 crore contracts) and 24,100 strike (90.4 lakh contracts).

Maximum Call writing was observed at the 24,000 strike, which saw an addition of 87.3 lakh contracts, followed by the 24,100 and 24,050 strikes, which added 53.67 lakh and 45.69 lakh contracts, respectively. There was hardly any Call unwinding seen in the 23,500-24,450 strike band.

4) Nifty Put Option data:

On the Put side, the 24,000 strike holds the maximum Put open interest (with 1.22 crore contracts), which can act as a key level for the Nifty in the short term. It was followed by the 23,500 strike (83.11 lakh contracts) and the 24,200 strike (78.59 lakh contracts).

The maximum Put writing was placed at the 24,000 strike, which saw an addition of 46.01 lakh contracts, followed by the 23,950 and 23,500 strikes, which added 26.49 lakh and 21.8 lakh contracts, respectively. The maximum Put unwinding was seen at the 24,200 strike, which shed 15.4 lakh contracts, followed by the 24,150 and 24,300 strikes, which shed 3.81 lakh and 3.08 lakh contracts, respectively.

5) Nifty Bank Call Option dats:

According to the monthly options data, the maximum Call open interest was seen at the 58,000 strike, with 22.17 lakh contracts. This can act as a key resistance level for the index in the short term. It was followed by the 57,500 strike (10.42 lakh contracts) and the 57,000 strike (5.68 lakh contracts).

Maximum Call writing was observed at the 57,500 strike (with the addition of 6.44 lakh contracts), followed by the 58,000 strike (3.22 lakh contracts) and 57,300 strike (2.27 lakh contracts). There was hardly any Call unwinding seen in the 56,200-58,100 strike band.

6) NiftyBank Put Option data :

On the Put side, the 57,000 strike holds the maximum Put open interest (with 10.4 lakh contracts), which can act as a key support level for the index in the short term. This was followed by the 58,000 strike (10.28 lakh contracts) and the 57,500 strike (5.7 lakh contracts).

The maximum Put writing was placed at the 57,000 strike (which added 2.29 lakh contracts), followed by the 56,900 strike (80,160 contracts) and 57,300 strike (57,570 contracts). The maximum Put unwinding was seen at the 58,000 strike, which shed 3.35 lakh contracts, followed by the 56,500 and 57,500 strikes, which shed 2 lakh and 1.64 lakh contracts, respectively.

Report by Sunil Sankar Matkar

Source: Money control

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Thursday, July 23, 2026

23/07/26, Market for Today

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23/07/26, Market for Today

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