Hello Everyone!
Hope you all had a safe trading week. This week was full of a rollercoaster ride for me. Somehow managed to secure the capital and didn’t lose much. After the FED’s recent another 50 basis point hike in May announcement world markets have tumbled. Yesterday DOW JONES closed with -900 points. Even NIFTY failed to sustain above 17400.
This week we will review -
NIFTY
BANKNIFTY
RELIANCE
NIFTY IT
NIFTY METAL
UBL
ADANI PORTS
Let’s get in!
NIFTY
After a decent short covering on expiry till 17400 NIFTY failed to hold above that level. BANKS being the main culprit with constant weakness from NIFTY IT as well. Even NIFTY METAL showed fresh weakness. Seeing this chart levels to watch out for are 17000 & 16850 on the lower side and 17320 on the upper side. Breaks any of it we see a good directional move on that side.
BANKNIFTY
Weakness in HDFC BANK and Fresh Weakness in ICICI BANK, SBIN, and many other names BANKNIFTY is unable to hold 36500 even after short-covering till 37000. It gave closing below 200 DEMA another sign of weakness which can take it if breaks below it till 34400. Monday will be crucial to watch. Long-only above 37000 as you might see sell on rising.
RELIANCE
Motabhai has been a savior so far. Single-handedly holding NIFTY. Also, it made a fresh ATH. A good weekly close. 2700 is the first line of defense breaks it we can fall till 10 & 20 DEMA i.e. till 2600. Of course, may not happen in a day.
NIFTY IT
A weekly closing below 50 EMA is a sign of weakness that may deepen in the coming days/weeks. The only advantage it can have is USD/INR trading above 77. Many good names are showing correction with some bounce which is not sustaining. For instance, NASDAQ is also showing weakness so we can see its rub-off on NIFTY IT.
NIFTY METAL
The metal index is trading below 20 DEMA and it may continue its fall till 50 DEMA. So stay cautious on metal stocks. TATA STEEL and JINDALSTEL are already weak.
UBL
UBL is a good close above all moving averages with decent volumes. After expectations of some announcements from UK PM + Summer is on its top rocking the whole country so we can see some spike in beer volumes. Keep eye on this one with a very tight stop-loss.
ADANI PORTS
After almost 12 months of consolidation, ADANI PORTS gave a nice breakout. If found near 840-860 I would like to add.
NOTE - Remember if the indices show weakness then stocks also might not show spikes so trade accordingly.
Also, you can keep watch on COLGATE, TATA CONSUMER, and APOLLO HOSP.
Trade safe guys, a crucial week ahead of us.
That’s it from my side see you in the next one.
Adios!