Good evening lads! Wassup!
The market is certainly not letting us catch a break. Keeping both buyers and sellers on the edge. The crazy and unpredictable moves in The US markets also give many of us sleepless nights. In search of the bottom, we all get frustrated and impatient.
Donโt forget to save your capital.
Today we will review -
NIFTY
BANKNIFTY
RELIANCE
HAL
DEEPAKNTR
NIFTY
Nifty Daily Chart -
Nifty Weekly Chart -
After acting weirdly and giving 400+ points move on both sides NIFTY managed to close above 16200. On the daily chart, we can spot death crossover (50 EMA trying to breach 200 EMA) which can possibly take NIFTY more down. As per data, both writers are in no position to give up. As of last week bears managed to not let NIFTY break 16400- 16500 on the upside whereas bulls managed to hold 15700.
Overall we are playing in a range as you can see on both daily and weekly charts we are in the process of forming a flag. We need a confirmation of direction to play the big move which can come only after breaking the range.
I am planning to play that big move and waiting to go long on NIFTY to break 16400 on the upside and to go short after the breakdown below 15700 in the spot.
Many are spotting a double bottom on the daily chart in NIFTY but Iโll only believe in that bottom once we are clearly trading above 16450.
BANKNIFTY
BANKNIFTY is yet to test the black lower line of the channel as all the indices did. Hence it makes BANKNIFTY a candidate for the big move. Like NIFTY we are dancing in the range in BANKNIFTY as well on the upside 34500-34800 & 33300 -33000 on the downside. The same strategy is here as well to wait for that big move to take place and then play it. Weakness can persist from names like SBIN, and ICICI BANK.
RELIANCE
Whatta blasting late move in RELIANCE on Friday. Exactly bounced from the lower level of the trending channel. Possibly can touch 2800 but such last-minute spikes are how sustainable we all know. It will be interesting to see. RELIANCE remains the key to holding NIFTY and giving support when others are tumbling. Watch out RELIANCE to play NIFTY.
HAL
Excellent breakout in HAL on the weekly timeframe. Treading @ ATH any dips are to be considered as buying opportunity in this one. As mentioned in Newsletter #19 HAL is still playing in the bullish zone. One should look for targets like 1800 & eventually 2000.
DEEPAKNTR
Not so good chart on weekly. But still, we will wait for the channelโs lower trendline to break. We can still short it on rising for the targets of the lower trend line. Watch this one.
Thatโs it from my side guys see you in the next one.
Adios!