Hello Traders/Investors!
Hope you all are doing great and taking precautions after the new variant news. Please wear a mask and never take your health lightly.
In this fresh edition, we will be discussing and reviewing what all has happened this week in the Indian and world equity markets. We will discuss important indices and stocks and try to understand what the future holds.
We will discuss -
NIFTY
BANKNIFTY
RELIANCE
HDFC LTD
HDFC BANK
ICICI BANK
SBIN
INFY
TCS
TATA MOTORS
TATA STEEL
Lets Start!
NIFTY
NIFTY bounced till 17480ish but couldn’t sustain there. 17500-17600 remains important resistance to change the trend into positive. Looking at the option chain yesterday the 17300 put writer gave up his positions and let the call writer again capture it. It will be very interesting to see on Monday how big guys play will they take it down forcefully now or consolidate in the range of 17000-17300. Longs in NIFTY only above 17600 now till then sell on rise. Fresh Shorts on NIFTY is only after breakdown below 17000. All are spot levels.
BANKNIFTY
BANKNIFTY the weakest structure so far, failed to give a close above 36800 which makes 36800-37000 important resistance. Also seeing option chain data 36300 put writer surrendered his positions. One of the weakest constituents is KOTAK BANK, making head & shoulder on the daily timeframe. Longs in BANKNIFTY only above 37200-37300. Fresh shorts only below 36000-35800 levels.
RELIANCE
In RELIANCE option chain data 2500 strike has the biggest call writing positions which makes it big resistance. No Long till the spot price is above 2550 and short below 2380. It’s a NIFTY heavyweight so its movement will be key to watch.
HDFC LTD
The FII favorite scrip saw a nice 3%+ move and then again gave up 50% of that move. Another heavyweight of NIFTY. No trading in this scrip for me. But you can watch out for the FIB levels marked.
HDFC BANK
HDFC BANK is a heavyweight for both NIFTY & BANKNIFTY. Its movement will be crucial in the coming days. Long-only above 1550 and fresh shorts only below 1450. Although 1480 will be tough to be a break if it does then we can see a dip till 1400 levels.
ICICI BANK
In ICICI BANK 700 will be the important level to break to continue more downfall. Looking at the chart it doesn’t give any confidence to go for long. Long-only above 750 and shorts below 690.
Trading is all about having your levels in front of you to take fruitful decisions in the live market.
SBIN
SBIN is not so looking good as well. Long-only above 490 and fresh short below 450.
INFY
INFY is in the range and so far it is able to hold its crucial support i.e 1650. Any consolidation or upmove is good here. Long-only above 1850. No shorts here as of now.
TCS
The only stock which is showing some strength. It was one of the long candidates in our last edition as it has completed the targets also. New fresh longs only above 3700 or near support of 3500. No short view as of now.
TATA MOTORS
The gap is still not filled in here. I believe that it is going for that gap. Anything near 420 or 400 levels is a great buying opportunity here. If it reverses from current levels then long only above 500. No short view here as well.
TATA STEEL
Trading near important support levels. I see a buying opportunity here for our long-term portfolio. For trading, long-only above 1180. No shorting here.
So as you can see we have intentionally reviewed and discussed heavyweights here. knowing them automatically gives us an idea about the indices as well.
The US markets are also showing the same volatility. S&P VIX is above 28 now which gives the sign of volatility continuation in the markets. NASDAQ has heavily corrected this week. DOLLAR INDEX is also consolidating. Same with GOLD as well.
News about the OMICRON variant was just an excuse for us to correct heavily. The uncertainty in the market gives no clear idea of what can be coming next. You can avoid trading on such days it’s better to stay light or can accumulate good stocks for the long term. A few names am tracking and will be looking to add are -
TATA STEEL, SAIL, JSW STEEL, AFFLE, ROUTE MOBILE, SRF, HDFC LIFE, LAURUS LABS etc.
As am completing the newsletter BITCOIN has shown a big deeper correction which gives another buying opportunity for us. Please stay cautious do not be in hurry to add a position here. Buy in tranches. Stay Safe.
So that’s it guys from my side. Please feel free to comment on parameters if I have missed any. Feel free to request your chart setups here. Also do let me know what you guys think of the market what is your view and how are you planning to execute it.
Chalo, Cheers!