Fruits Investments Newsletter #5
Weekly review of Indian Markets and crisp commentary on whats next!
Wassup everyone? How are you all doing?
This week we saw too much drama in Indian financial markets. The Paytm saga and Nifty losing crucial levels to continue its fall deeper.
Tuf week! In this fresh newsletter, we will be discussing what to look for in the coming week and the remainder of this month. Also, we will try to find out what is happening in the world markets as well. We will review the crypto space as well today. Keep in mind we are looking on a longer-term perspective like weekly charts so that we understand a bigger picture here and decode it to build our action plan accordingly.
We will review -
NIFTY
BANKNIFTY
HDFC BANK
RELIANCE
DOLLAR INDEX
GOLD
DOW JONES
NASDAQ
BITCOIN
ETHEREUM
Grab a Jim Jam biscuit and letโs crack it!
NIFTY
NIFTY on daily and the weekly chart looks weak but also near short-term support of 17500 futures levels. It has made a low of 17694 so far. The long unwinding on put writerโs side has been the big culprit for this move as they are low in confidence. No longs till we cross 17900-17950 futures levels and give a close above it on the daily chart. All the major sectors were in red on Thursday. Only HDFC BANK was one of the giants to show strength and not break down.
BANKNIFTY
Banknifty is has been disappointing since last week. No sign of strength in it. ICICI BANK, KOTAK BANK & AXIS BANK looks weak whereas HDFC BANK & SBIN were showing some support as they are near important levels. 38000 is still an important level as a tuf fight between bulls and bears is going there. We have to still wait as nobody has given up. Longs only above 38600+ futures levels on a closing basis. Shorts only below 37800 futures levels. Meanwhile, you can also look at the scalp in this range.
Some important stocks am watching are -
RELIANCE
Look at the weekly big red candle! am a little skeptical about RELIANCE here as it is not showing any strength also it was one of the participants to pull NIFTY down. It needs to hold 2400 and trade above it to start a new journey. If not its a trouble for RELIANCE & NIFTY. Long-only above 2520 levels. Also one can look to add this in cash.
HDFC BANK
HDFC BANK is also near its important support level. Itโs a make-or-break zone here. If breaks 1520-1500 levels it can a downfall to 1480 levels which signals trouble for BANKNIFTY as well. I believe it should hold these levels but letโs see. Longs only above 1580 levels.
Also one can keep watch on NIFTY AUTO and its constituents as NIFTY AUTO has made a new ATH. Its constituents like MARUTI & TATA MOTORS also look good.
Letโs talk about some factors affecting this correction in our market.
Inflation concerns are the biggest highlight in every world market. Also some other factors like DOLLAR INDEX and movement in GOLD.
DOLLAR INDEX
The dollar Index has been constantly rising and still looks good on charts. Market every time reacts to its movement and worries. A consolidation in this can give the market a little breather here.
GOLD
The inflation saga continues and typically makes its impact on the GOLD movement to take it on a higher trajectory. It looks like it is coming near its resistance levels and should consolidate here before making move on either side.
Now letโs have a look at the US Markets and whatโs happening there.
DOW JONES
A similar movement of correction here as well also it coming near support levels of 35300 levels. It should not break it to further continue its fall.
NASDAQ
NASDAQ is altogether in a different zone and keeps on making new ATH levels. As of now this is the only index which is showing strength. Possible correction till the first yellow line cannot be neglected though.
Letโs move into the crypto world -
BITCOIN
Bitcoin is also showing correction signs here. One thing which I observe is that every year before thanksgiving Christmas and New year it observes the correction if the correction is not deep then it will again start its new journey on the upside. The levels are mentioned in the chart clearly and one should look to add small bags here. The best is to keep your SIPs going in.
ETHEREUM
Comparatively, ethereum looks a little stronger than bitcoin here. Also, it shows quick reversals after every correction. This behavior I have observed in this year only.
Do not trade crypto without price alerts! You must track all these tokens every day. Some other tokens which you can track are -
SOL (SOLANA)
DOT(POLKADOT)
FTT (FTX TOKEN)
BNB (BINANCE COIN)
So thatโs it guys not much activity on the stock-specific side I wonโt look to add any names. Yes, many have corrected and down from their ATHs. I will wait for the market to stabilize a little and consolidate in a zone and then should plan entry in different names.
Till then one should make a list of stocks with good performance-driven names and wait for them to add.
See you in the next week guys.
Adios!