Hello all! How’s the weekend going?
Some improvement in sentiment was seen as essential indices all over the world, the Indian market showed recovery. DOW & NASDAQ showed a positive recovery on Friday closing at the day’s high. Is it the bottom? No one knows only time will decide.
Today we will be reviewing -
NIFTY
NIFTY BANK
RELIANCE
NIFTY IT
JUBLFOOD
APOLLOHOSP
Let’s do it!
NIFTY
Weekly Timeframe -
Hourly Timeframe -
On a weekly time frame, NIFTY made a dragonfly Doji, price is not ready to move down. As you can see on the hourly timeframe it's a vertical rise. The possibility of the price moving up on Monday is good but one should look for price sustainability. As per Friday's movement, it was getting tough for NIFTY bulls to breach the 16360-16400 zone again. On the downside, NIFTY made support @ 16160-16200 zone.
Constituents like NIFTY IT, and NIFTY BANK showed strength and many heavyweights showed great pullback except RELIANCE.
Cautious longs for me on NIFTY with very tight stops.
NIFTY BANK
Weekly Timeframe -
Daily Timeframe -
Strong & Excellent move-in BANKNIFTY. Perfect short squeeze! From That second-half recovery on expiry day to Friday’s move. All done and dusted. Now it’s a no-trade zone for BN as we are near resistance 35800-36000. I want a consolidation or some retest of 35000-34800 from BN to have a better risk-reward for longs. 34500-34700 is big support now for BN.
RELIANCE
Bounced exactly from the lower trendline of the channel. 2600-2650 remains a resistance for now. If it breaches it can spike straight to 2800. Break below 2500 again will be a big sign of caution. No trade-in RELIANCE as well.
NIFTY IT
After a decent pullback in NASDAQ, NIFTY IT also showed the same picture. Although it doesn’t convince me until we see a nice big green candle on weekly. Many oversold constituents showed bounce. The sustainability of this bounce will decide the next move. Wait till NIFTY IT closes above 28900-29000 levels. Watch out for names like KPIT, BIRLASOFT, COFORGE, and MINDTREE.
JUBLFOOD
W pattern, double bottom, big green candle breaking 14 days highs. A recipe for positional longs in JUBLFOOD. Watch out for a breakout of 520-530 levels on with a 5-10RS stop-loss for the target of 570-600 or buy-in dips would be best.
APOLLO HOSP
Another possible reversal candidate for the targets of 4100 with a stop loss of 100Rs. Make sure you take those trades with the possibility of stop-loss hitting multiple times.
So that’s it from my side guys. See you in the next one.
Adios!