Good Evening Peeps! Kya scene hai weekend ka?
As the dreadful May continues, Selling in the market is unstoppable. Even without VIX rising much. World markets are in a bad mood. After touching March lows there’s no sign of recovery as even the slightest bounce is being sold. RBI is again expected to hike rates in June. Inflation is unleashing its power now.
Today we will review and discuss -
NIFTY
BANKNIFTY
RELIANCE
SBIN
NIFTY METAL
Let’s go!
NIFTY
I just don’t like this weekly close on NIFTY. Look at the size of the last two weekly candles and their body. How should we build the courage to long this from current levels? The yellow box you see is the area I’ll be looking to long i.e a close above 16500 in spot. It remains a sell-on-rise candidate for me till it gives a close above 16000 so that I won't short and wait for confirmation of a new direction. 16000 - 16300 is a no-trading zone.
BANKNIFTY
Same thing in BANKNIFTY as well, two big full-bodied candles. And the way BANKNIFTY surrendered 34000 is not a good sign. Breakdown in contributors like ICICI BANK, SBIN, and HDFC BANK is giving bad vibes as well. Long-only if closes above 34500.
RELIANCE
So far RELIANCE is traveling in a weekly channel and now trading near support of this channel. Break of this would be big trouble for the market. Although we are @ 50 WEMA as well so we might expect some bounce here but as happened on Friday the bounce is likely to get sold into. Watch out for this one for NIFTY’s direction.
SBIN
After a great result which got sold into, SBIN gave a very bad close according to me. A break of 50 WEMA with decent volumes was enough to take down BANKNIFTY as well. Channel support is around 420. Short this one!
NIFTY METAL
Just look at the size of that last weekly candle and you only tell me how you will anticipate it? Yes, we are near support but the way it shows its intensity of fall I am not sure if any bounce will sustain here. It can cause damage to NIFTY as well. Watch out for names from this index!
Also, keep in mind that you might feel that your system is failing or you are not able to capitalize on such moves which is totally ok! Trust your system and have patience.
A big move is just around the corner.
That’s it from my side guys, See you in the next one.