Fruits Investment Newsletter #3
Review of previous edition and commentary on future outlook on stocks, indicies, and cryptocurrencies.
Good Evening Folks!
How are you all? Today we will be reviewing and understanding this week’s markets activity and sectoral movements.
We will be talking about -
NIFTY
BANKNIFTY
RELIANCE
ICICI BANK
BANK BARODA
FEDERAL BANK
BITCOIN
ETHEREUM
Let’s start with -
NIFTY
In the daily chart, NIFTY has been making lower highs and lower lows for the past few days. Also as of this week’s option chain data 18000, Put Writers looks the first line of defense of NIFTY. If it goes below or opens below that level on Monday we can see a start of fresh new selling. The range to watch out for is 17940 to 18000. Long-only when we are trading above 18300 for an hour.
It looks like sell on a rise market to me. Hence volatility will be there so do watch out for your trades and their quantity. Also, some key factors to watch out for here are RELIANCE has given strong and record-breaking performance in Q2 results with ICICI BANK giving a decent performance as well. We will be talking about it in the latter part of the letter.
BANKNIFTY
A fresh breakout in BANKNIFTY via strong performance from PSU BANKS and some PRIVATE BANKS. ICICI Bank as well has shown good performance in results.
The trend in BANKNIFTY is strong compared to NIFTY. BANKNIFTY is certainly taking a leadership position and showing strength compared to NIFTY IT. The credit scene is looking poised to grow in coming quarters. PSU BANKS has also shown good and steady performance in quarterly results. Hence fundamentally banks look solid to me for the coming days.
RELIANCE
RELIANCE is a nice move from the range breakout. As it will be and after result day move so have to wait and watch here. Yes, there are levels here to track for the trade to take on. 2530-2560 is good support but volatility can trigger stop-loss here. This is the first time am very uncertain about levels. On the upside, I’ll be watching for a break above 2650 and a close above it on 15 min candle.
Record results have been announced by RELIANCE. In its all business segments they have performed significantly well above expectations. A small decrease in margins though we have to see how markets react to that. For me, it’s quite a stellar performance.
ICICI BANK -
Another after result trade. Somehow I like to play with fire. Already seen a great rally in this one but a good performance by ICICI BANK can take it above and beyond. Also, it can give momentum to banknifty as well. Levels are here to watch long above 770 and no trades for short positions. If you went with carryforwards longs you should look for exit above 780 and trail stop-loss here.
An all-around performance from ICICI BANK. Seeing this number makes me more positive about banking and financials. The underperformance from this sector is looking to end and start afresh and positive momentum. Still, don’t just jump in this trade and have your stop loss in the system.
BANK BARODA
This pick was mentioned as one of the top picks in the previous newsletter. A strong buy pick as it has touched 1st target of 95. Next few targets are 100 & 110. Stop loss below 88 on a closing basis.
FEDERAL BANK
FEDERAL BANK look at the volumes! A strong buy candidate here as all the PSU BANKS look interesting here.
Target - 110 & 120
Stop-loss - 98
BITCOIN
Made a high of $67000 and gave a sharp correction to test 10 DEMA and now trading in between 10 and 20 DEMA. The first and important line of defense is $58420. I expect a retest of these levels and then only a directional move is possible here.
Long above $67000 only! No short positions as of now.
ETHEREUM -
After reversing exactly from ATH levels made earlier this year, Ethereum is nicely maintaining its strength. Still, above 10 & 20 DEMA, it makes Ethereum safe as of now long only above $4400 & no short.
That’s it, guys!
We have reached near the top I believe the swings in the market have been insane these days. It’s okay not to trade sometimes. Inflation points are a bit worrying but what markets decide on this is we will have to wait and watch. Many stocks are already trading near their 50, 100,& 200 DEMA. MIDCAPS & SMALLCAPS have shown some deep corrections as well. So be cautious here trade with stop loss. 20000 on NIFTY is very much possible here. let’s see!
See you in the next one!
Adios!