Hello Everyone! How are you all?
It’s been a rocky ride so far after Diwali in the market. Let’s try to understand and figure out what all has happened in the market and what we can expect.
We will be discussing and analyzing -
NIFTY
BANKNIFTY
STOCKS
REVIEWING WORLD MARKETS
GOLD
BITCOIN
Let’s do it!
NIFTY
NIFTY after retracing till 17650 levels and now closed above 18000 on Friday. As you can see the FIB levels on a closing basis from recent lows show that NIFTY will be facing resistance @ 18135-18150 levels.
Also according to this weekly option chain data PUT writers have strengthened their position @ 17900 & 18000 at the same time we can see long unwinding from CALL writers @ 17900 & 18000. Also, the INDIA VIX is down till 15.21 it is giving signs of less volatility and a directional move happening.
Also, we can see great support from heavyweights like HDFC LTD, NIFTY IT stocks like INFY & TCS, RELIANCE. As NASDAQ is hitting new ATH i see NIFTY IT move continues.
Long is NIFTY above 18200 spot levels stop-loss 18000.
BANKNIFTY
BANKNIFTY has not shown any move in a recent NIFTY pullback. As far as NIFTY IT is moving I see cool off and position building in BANKNIFTY for its next move. I see a base-building activity in BANKNIFTY till we break on the upside above 39150 on spot. Banking constituents also look tired so they will also look to gain some energy to build further momentum.
The biggest issue is INFLATION noise for Banking as well as other factors like DOLLAR INDEX, BOND YIELDS, and CRUDE OIL prices.
As of now, we are ok till we trade above 38200 levels on the spot, and it looks like strong short-term support.
Long-only above 39200 spot levels.
A few Interesting stocks pick I have for this coming week -
RELIANCE
Reliance has been a key factor in holding NIFTY steady. From making low of 2450 range it is now showing a nice reversal. Important levels on the upside and downside have been marked in red and yellow lines respectively. Short term trend looks solid on Reliance if any stock which can hold NIFTY steady is RELIANCE.
TCS
In TCS a nice base has been made. I see a nice and juicy buying opportunity in TCS at this particular junction. Anything below 3380 is a sign of caution. TCS has been an underperformer compared to other big daddies. Recently HDFC LTD showed its strength I believe this can be time for TCS to rise and hold NIFTY.
INFY
I see a range in INFY time and again tested 1640-1660 levels and bounced to test highs. Although it has reached 1780 levels a small retest can happen here I feel that can be a perfect buying opportunity. Anything above 1800 levels and we can see a good and strong upmove in coming days.
LTI
One of my favorite stocks LTI look at that candle! Full-bodied! it’s a 10,000 mark candidate. It’s a perfect buy here as it is breaking its previous high. I have published it before as well in my previous newsletters and have mentioned and positioned from 5000.
So these few stocks I have on my radar for the coming week.
World markets also look quite okay DOW JONES showed a bumpy ride after the US INFLATION DATA and looks steady now. NASDAQ is making new highs. Asian Market and European markets also look okay-ish to me.
GOLD
As the INFLATION saga continues GOLD is also showing strength trading near $1870. This also helps to play stocks like MUTHOOT FINANCE, MANNAPURAM & TITAN. Another parameter one should look upon while trading equity. I alerted this in my previous Diwali edition where I bought GOLDBESS.
BITCOIN
Bitcoin Perpetual Futures has made a high of $69200 and now retraced till 20 EMA. It should act as good support here and help to build a reversal. Long-only above $69000.
That’s it, guys. Follow me on Twitter for more daily & live updates.
See you in the next one!
Adios!