What Happened Last week (20-24 July) ??
When Everyone was expecting Nifty to take U-turn from 11000 marks, it managed to cross it comfortably, and for the next 4 days, it’s sustaining on higher levels 11120-11240.
So what do all Technical indicators, option chain has to tell about it, what is my view on it? And which are those stocks where we do in-depth analysis? Let’s see. If your stock is not here? Then don’t forget to subscribe to us and Feel free to ask us by Contact Us Button.
Technical analysis of Nifty and Banknifty
Daily chart of Nifty50
As per Pivot point and option chain, Nifty had a strong resistance near 11000 zone, but on 20th July it managed to cross it comfortably and now sustaining on a high level for the last 4 days. In the range of 11115 and 11240. Forming a spinning top on Friday suggests Openness, but the overall trend is still BULLISH, why? See below picture.
Weekly chart of Nifty50
If you look at the weekly chart of Nifty50, there is no bearish movement at all this week. AS Nifty managed to close above not just 5 weekly EMA but also 50 weekly EMA. RSI is not in Over baught zone as well. So as per this chart, unless Nifty breaks 11000, there is no trend reversal, and if we break this weekly candle’s high, then more Upside from here.
Monthly chart of Nifty50
This is a monthly chart of the Nifty50, see July month candle. Last week too I said there was no weakness here, and now it’s super Bullish as formed Bullish MARUBOZU candle though we have one week left. I won’t expect a huge change in the trend of this Monthly candle last week unless there is any big negative news in the market. Now let’s see, Nifty and Banknifty
In case of Nifty bank, Unlike Nifty50, it’s not sustaining at higher levels. Rejected from the Resistance zone near 23000-23200 twice. But if you see Friday’s candle, Nifty bounced from 100 day EMA and Bulls managed to give a good closing, compare to a huge gap down. So Nifty, if it breaks Friday’s high, then it will do one more attempt to break this Resistance zone, or if it breaks the low of Friday, then it will go near the low of 20th July candle near 22250 or 22000.
PIVOT POINT ( SUPPORT and RESISTANCE)
Immediate support for Nifty is near 11150, as you can see in the daily chart. Nifty is taking support from that zone for the last 4 days. If broken, then 11000 will be strong support.
Now for the Resistance to move towards Nifty, it has to break or close above 11250 zones for a fresh rally on the upside. Nifty and Banknifty
Now in the case of Nifty bank, 22500 is immediate support, but there is a strong support zone in the 22000-22250 zone
Upside 23200-23220 is hell of a resistance for Nifty bank from where it got rejected and came down twice already, so no fresh rally in Nifty bank unless it closes above this point in the daily chart.
Moving average -:
Nifty50 this week managed to cross both 200 day EMA and 200 day SMA comfortably. Also, it’s staying above 5 day EMA near 11150.
On Friday Nifty bank just managed to hang on to the support of 5 day EMA near 22664, and the next strong support is near 110 day EMA at 22380. And 200 day EMA and SMA are both way ahead for Nifty bank as of now, which are above 25000, so a long way to go.
Option chain -:
On call side , Nifty has strong resistance from 11200 to every 200 point interval, but strong resistance is near 11500 and then 12000 zone. More call writing took place near 11200 and 11300, so suggesting it’s strong resistance for Nifty50 as call writers believe it won’t be easy to cross.
On the call side, more than 9 lakh+ open interest at 23000 zone which is very strong resistance for Nifty50. Also, maximum call writing is at same level too, so Call writers believe it’s still tough to cross the 23000 zone. But if it does cross, then 23500 and 24000 will be strong resistance, tough zone but less tougher resistance for Nifty bank compares to 23000 zone.
On put side 22500 is an immediate support zone, but 22000 will be a strong support zone in case Nifty slides.
PCR ratio -:
Below 0.7 = Over sold
Near 1 = Neutral
Above 1.5 = Over baught
Put call ratio for
Nifty and Banknifty
And in Nifty bank = 0.839
So, as per PCR ratio, Nifty is near Overbaught zone , Not inside but near it. And in Nifty bank, for Bulls Nifty bank has a more attractive ratio than Nifty. Nifty PE ratio
Nifty PE ratio getting higher and higher in the Overbought zone. The moment it goes lower than the previous one or two days, we have a problem. As of now, it’s 29+ but no weakness on the chart at the moment.
Heikin Ashi -:
Nifty and Banknifty, Heikin Ashi though shows an accurate trend, but it’s lagging Indicator as it follows previous candle prices.
In the case of Nifty50, it’s suggesting bulls are getting overweight as the size of candle getting smaller but no bears entry yet. So possible Bulls are Consolidating unless any red DOJI candle formation here.
Now in Nifty bank, bears did made attempt to pull down Nifty bank but didn’t succeed as you can see Bulls are not ready to give up plus see the past candles on 16th July, the same red hammer-like candle is formed now. Might we see fresh upside unless Friday’s low broken?
My view on Nifty and Banknifty -:
For Nifty50 our range will be 11115-11240. Break on either side will be a big rally. As of now, I don’t see a trend reversal in Nifty except some ups and down but fresh upside only if close to 11240.
For Nifty bank, I am expecting one more attempt to touch the 23000 zones. If cross and close above 23200, then a fresh rally on the upside is possible but only above 23200. Also, ICICI Bank will decide tomorrow the trend for Nifty bank and Nifty too.
Stock to watch out for
Last week performance, we share chart and explained following stocks.
- Voltas given at 576 and now made high of 599 ..CMP 592 ..still SL safe.
- BEL was given at 98 and clearly said it’s pole and flag BREAKOUT made high of 106 so far , again SL safe.
- HDFC BANK we gave as result bet on 1098 for upside and must buy of cross 1100 ..made high of 1150+ ..
Let’s see stocks for this week now,
On the weekly chart it formed a Bullish MARUBOZU candle , so on the chart we still don’t see a weakness here. Next week more upside is possible, but there is one thing to notice before you buy this stock. Check RSI level, it’s getting overbaught and now at 78, so till The results day on 30th July if it goes near 80 or above, get cautious as a correction will be possible. PCR ratio for Reliance is 1.075 suggesting a neutral zone.
IGL is near the support zone of 400, and in spite of big fall in the market on Friday, this stock didn’t break its Support, so one can buy this stock but with a strict SL of 400 if you have a positional view. Remember if it closes below 400, then the next support will be near 300, so very strict SL. PCR ratio for IGL is 0.384, which is very attractive to fresh Buying.
Alembic pharma on a daily chart formed a bullish harami pattern so there is a possibility of upside, but there is one interesting thing in the weekly chart. See below picture,
This stock broke previous Resistance on the weekly chart near 800 and broke it very easily moving towards 980 from there, so for the long term it’s a good stock, and I expect 1000-1200 target within 3 months here.
This stock is not in F&O, so no PCR ratio.
Like Alembic pharma, this stock also gave BREAKOUT in the weekly chart, but is this good price to add this stock. I don’t think so, why? Because RSI level in daily chart is 87 and in weekly chart it’s 80+. Also, Bollinger band suggesting stock is Overbaught already so I personally will add this stock only near 700 or below. No PCR ratio as stock is not in F&O.
The above chart is a weekly chart and every candle is for one week. See how many times it got rejected near the 510-520 zone. Same was previous strong support and now it’s Resistance if Sunpharma managed to close above it ..only if it does, l then I am expecting easy 50-70 point upside in this stock. Especially above 520 which is 200 weekly EMA. PCR ratio for this stock is 0.493 very attractive for BULLS.
This is a Daily chart of TCS and sees how many times it got rejected near 2300 level can you count? So will it be a lifetime BREAKOUT if it closes above 2320 in the daily chart right? But I think it’s a good buy, why? See the below picture.
See the hammer like a candle in the daily chart of TCS. It took support near 2150, and Bulls managed to pull it up in a bearish trend, so one can buy this stock with the closing SL of Friday’s low for the short term. PCR ratio is 0.456, which is suggesting a very good buy for this stock. But remember 2300 is a dangerous zone, make or break.
The result of ICICI Bank good or bad will be a topic open for debate. But the question is, will it be as per expectations of the market.
Let’s see what the chart says ICICI bank broke important Resistance of 380 and gave a good closing after going down as Bulls managed to pull it up just above 380. PCR ratio is 0.477. So I am expecting a good upside here on this stock. It might reach the first Resistance of 400 or even above, but the question will be will it sustain on the upside ? Friday’s low can be taken as SL for risky players and for safe players. 380 will be SL.
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