Weekly Analysis 17-21Aug20 of Nifty and Banknifty & best 3 stocks

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What Happened Last week from 17th to 21st   August?

If you haven’t seen indecisiveness in the market before, then it was there last week. They only thing we can see here is Nifty went high very fast, but now speed is slowing down when PE ratio is too high and also Nifty is consolidating on the TOP. Let’s see what all technical indicators say. And what’s my view? And also stocks of the week as well.

Technical analysis of Nifty and Banknifty

Candlestick

Daily chart of NIFTY50

If you look at the Daily chart of Nifty50 and past 5 day candles, there is no fix trend in the market at the moment. Complete Indecisiveness and it’s reason is Nifty50 is getting heavy at the TOP. Though it’s rising with the upside in the global market, but now it’s rising slowly and with all speed breakers.

Weekly chart of Nifty50

 One single candle of last week is spinning top as expected, which suggest indecisiveness at the moment. Not just one but multiple spinning top candle last 3-4 weeks after a strong bullish trend, and we have learned in Spinning Top article that if it formed after a strong trend, then trend reversal is expected. Let’s see.

Nifty bank

Along with Nifty50, Nifty bank is consolidating as well. It showed good upside on Friday but came down after hitting the Resistance of 22300.

If you check the last 5 daily candles you can check clearly if Nifty breaks Thursday’s low or Wednesday’s HIGH, then Nifty bank will give a breakout on either side.

 PIVOT POINT ( SUPPORT and RESISTANCE)

For Nifty50

Previously we have given 11350 strong resistance for Nifty50 and explained it as well. Now the same 11350 level is strong support, and if broken comfortably, then 11100 will be the next strong support. 10900 is a hell of a Support for Nifty50, and it will act as a make or break level.

On the upside 11480-11500 is an immediate strong resistance zone, but if broken, then we will see 11700 as the next resistance zone.

Nifty Bank

21000 is a make or break level for Nifty bank from where it bounced back in the past, and on the upside 23000-23200 is a strong resistance zone. But right now Nifty bank is stuck between 21500-22500 zone. It has to break on either side for some movement in the Nifty bank.

Moving average -:

Nifty50

11200 is the 20-day EMA for Nifty50 and from where Nifty50 made a bounce not just one but multiple times. There is 200 day EMA on downside 10930, and it will be a decisive level for Nifty50.

Nifty bank

21767 is a 50-day EMA in Nifty bank. And 22215 is a 100-day EMA in Nifty bank. Now Nifty bank broke the 100-day EMA on Friday, but if it slides, then these two will be deciding levels.

PCR ratio -:

Below 0.7 = Over sold

Near 1 = Neutral

Above 1.5 = Over baught

Put call ratio for

Nifty-:  1.12644

And in Nifty bank = 0.9270

So, as per PCR ratio, Nifty and Nifty bank both are in neutral zone. It has to cross either 0.7 or 1.5 ..let’s see.

Nifty PE ratio

Nifty PE ratio already suggested multiple times BULLS to get cautious as Nifty PE ratio already above 30 which is 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 Bullish trend at the moment.

My view on Nifty and Nifty bank -:

For Nifty50 and  Nifty bank

Nifty and Nifty bank went like Rocket when Nifty was near 7500-8000 zone and Now it’s near 11400. So after breaking strong resistance of 11350 , Nifty formed multiple spinning top for the last 3-4 weeks and also it’s rising slowly compared to the last movement. Which suggests Bulls are getting heavier and Nifty and Nifty bank might fall.

But remember very huge correction in the market only if Nifty50 close below 10900 and Nifty bank close below the level of 21000./

Stocks of the week

Let’s see 5 stocks this week, but before that, let’s see last week’s performance. Guys these are not tips or paid calls. It’s just my personal view on stocks.

1. Hdfc life expected upside and went from 563 to 610.

2. Asian paint was given for upside at 1806 it went up to 1950 🔥 and more upside coming soon.

3.            Tata Power , we expected upside from 54 it made high of 63.

4.            LT was given Buy at 982 , it went up to 1025.

Let’s see stocks of this week now,

  1. Federal bank

Not just for short term investors but also for long term investment, especially those who have patience. Before corona, this stock price used to be in the 100-120 range.

The federal bank formed a bullish Marubozu in a weekly chart. It also broke 20-week EMA and 5-week EMA. Suggesting more upside but remember the stock will show more upside only if it close comfortably above 60, and then strong resistance will be 65-75 ahead.

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You can see our articles

Quick to know about basics of share market for beginners

Top 3 charts in stock market? and why candlestick is best ?

Learn Marubozu candle pattern in 3 simple steps

What is Spinning top candle

Doji candle & 4 types of Doji

How to use Macd indicator 

What is Pinbar, Hammer, Inverted Hammer, Hanging man & shooting star

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4 thoughts on “Weekly Analysis 17-21Aug20 of Nifty and Banknifty & best 3 stocks”

    • Zeel has been steadily rising from 140 to 200 now some consolidation is possible. 186 -168 are support levels of broken then will again go to best buying price near 140 .

      As of now stock hit Resistance of 200 day ema near 210 and went down a bit ..now weekly candle is bullish so instead of going downside if stock goes upside then wait for it To close above 210. To add for short term gain ..

      For long term add near supports.

      Reply
  1. Can you shade some light on IRCTC and ICICI Lombard (possible upmove after merger)

    Also which is recommended Pharma stock and it’s level

    Reply
    • Normally i follow technical more rather fundamental .

      Now iciciGI has been following its 20 weekly EMA as support so as of now it’s near same support near 1270-75 but if broken then very strong support near 200 day EMA at 1252.
      Weekly candle is bearish so i would suggest wait for it to buy as of now.at least near 1250.

      For IRCTC best buy is near 1200-1250 ..but if you get anything near 1000 or below then grab it with both hands .. ofcourse in steps with 60-70% first and then 10% for each 10-20% dips in stock price

      Pharma sector is rising coz of corona but it’s most unreliable sector in long term for 3-5 years especially when it has risen so much .

      Still if u want to add then my favourite stock is pfizer (CMP 4600) for long term…for short term Lupin ( CMP 981) is good if cross 1025 then rocket ahead

      Reply

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