Table of Contents
What Happened Last week from 10th to 14th August?
There was no big movement in NiFTy50 and not much big rally in Nifty bank(Nifty and Banknifty) as it was consolidating near strong resistance of 11350. But, except on Friday. Now why it was consolidating ?? Why It took a fall on the last day of the week and what will be levels which will decide next movement?? Let’s see.
Technical analysis of Nifty and Banknifty
Candlestick
Daily chart of NIFTY50
Nifty50 had consolidation movement near it’s strong resistance of 11350 and eventually it gave a fall. Now Nifty50 is in formation of double top pattern. Haven’t formed yet but will be confirmed only when it breaks the neckline as shown in the picture.
Also 10900 is the strong support of Nifty50. The candle formed on Friday is bearish candle but it took Support from 20 day EMA. So though bearish closing but Bulls can show some bounce here.
Weekly chart of Nifty50
Weekly chart formed spinning top candle which gives two indications here. First is indecisiveness in the market at the moment with closing below previous candles High . Secondly , on the Bullish trend we are seeing Nifty50 formed spinning top which suggest Bulls are not as strong as before.
Nifty bank
Nifty bank went for correction as well on Friday and it was big correction but Nifty bank made a bounce from 21500. Which will be strong support now and if broken then we know as discussed before that closing below 21000 will bring big fall in Nifty bank.
PIVOT POINT ( SUPPORT and RESISTANCE)
For Nifty50
How we decided 11350 level?
Previously when Nifty50 was near 12000. It made big consolidation of 1-2 months and took support near 11350. So it was very strong support level. Now same is strong resistance level in NiFTy50. That’s why there is consolidation is going on. MACD already gave a sell signal on Nifty50 on daily chart but Friday’s low will be immediate support and then 11000-10900 will be strong support.
Nifty Bank
21000 is a make or break level for Nifty bank from where it bounced back in the past, and right now it is taking Resistance near 22500. If crossed, then very tuff Resistance ahead will be 23000-23200. And on downside if break 21000 then Very big fall will come in market.
Moving average -:
Nifty50
11100 is 20 day EMA for Nifty50 and same was Friday’s low from where Nifty50 made a bounce. On downside 10742 will be 50 day EMA and 10660 will be 200 day EMA , will be decisive level only if 10900 broken.
Nifty bank
21679 is a 50-day EMA in Nifty bank. And 21900 is 20 day EMA in Nifty bank.
Nifty bank already broke 5,20 ,100 day moving average , and now taking support near 50 day EMA where it closed on Friday.
PCR ratio -:
Below 0.7 = Over sold
Near 1 = Neutral
Above 1.5 = Over baught
Put call ratio for
Nifty-: 0.7423
And in Nifty bank = 0.6785
So, as per PCR ratio, Nifty and Nifty bank both are in hold of bears but now if one more fall comes like Friday it will enter in oversold zone and might show some bounce (dead or strong time will tell ).
Nifty PE ratio
Nifty PE ratio already suggested multiple times BULLS to get cautious as Nifty PE ratio wad above 30 for the first time ever, which is near Over bought zone.
Heikin Ashi -:
Hekin Ashi shows an accurate trend, but it’s lagging in the Indicator as it follows previous candle prices.
Both for Nifty and Nifty50 Hekin ashi is suggesting a Bearish trend at the moment.
My view on Nifty and Nifty bank -:
For Nifty50,
I am expecting one more fall in NiFTy50, can’t say how much big but if it close below Friday’s low then 10900 will be strong support and if that’s broken then it will be another big rally on the downside. And if Nifty bounce back then first Resistance near 11250 and then ultimate and very strong resistance near 11350.
For Nifty bank
On Monday again next hearing on AGR dues that will decide further trend but on chart, I see Bearish trend will continue as Nifty bank is still weak . 21000 will be crucial level and on upside if 22500 broke comfortably then we will see Nifty bank touch 23000-23200 zone again , Which will be strong resistance.
Stocks of the week
Let’s see 5 stocks of this week, but before that, lets see last week’s performance. Guys these are not tips or paid calls. Its just my personal view on stocks.
1.SBIN was given at 190 from where it made high of 207 and now again came down.
2. Asian paint was given for upside at 1806 it went up to 1835+
3. Apollo Tyre was given buy at 124 and it went up to 133
Now 134 is 200 day EMA and more upside only above that.
4. M&M was given buy near 600 and stock went up to 648.
5. McDowell was given buy near 586 and it went upto 604.
Let’s see stocks of this week now,
- HDFC LIFE
HDFC life already gave a big rally on the upside and that’s why we are seeing a big fall in the stock. As if now my view is bearish and stock might go up to 550-560 which will be 200 days EMA of stock and very strong support. If it falls from there which looks less likely to me then the next support will be near 500.
Chart and Deep analysis of Next 5 stocks
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Bhai i wanted your opinion about Alkyl Amines should i hold it or sell it??
And about Alufluoride is it good buy at cmp or shld i wait .. which levels to buy at.??
Thanks in advance
Alkyalamine is overbought at the moment in daily , weekly chart and if u see daily chart then at the moment ita Consolidating.
If it come down near 2500-2600 it’s a very good buy . I am expecting further upside here as MaCD in weekly chart and monthly candle is Bullish..but still 10 days to go for this month .
Now what worries me is stock is in ASM list ..so if you are already invested follow 2800 as closing SL ..if you can take more risk then 2600-50 zone will be support zone can be ur stop loss
2. Alufluoeide
Brother sorry to say but i avoid predicition in ONLY BSE stocks due to huge manipulation and operator driven.but i will tell u what chart says … If stock close below today’s low of 205 then more downside …
If you want to add this stock then there is fresh pole and flag BREAKOUT in weekly chart u can add and follow today’s low as SL
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