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Table of Contents
When will market fall and how to predict fall in market at right time ??
Before we start weekly Analysis, it’s important to answer this question which is running in everyone’s mind. Here we go,
1. It breaks all moving average 20,50,100 and 200 day EMA 💔💔
2. Forms Shooting star, a hanging man candle or a bearish MARUBOZU candle in a weekly / monthly chart 💔💔
3. Big consolidation ( spinning top/ Doji) on the higher side in the weekly chart with more selling volume will eventually make a fall.💔💔
4. When the MACD line goes below the Signal line (a single time✅ not multiple times❌ ) in the weekly or monthly chart
5. RSI level in the Weekly or Monthly chart or both goes below 40 comfortably.
So as of now, I don’t see any of these indications in the market, so till we get such indications, let’s be stock specific.
What Happened Last week from 24th to 28th August?
The BREAKOUT level which was given for Nifty50 was 11350 and Resistance zone near 11480-11500. It crossed it comfortably and now heading for 11700, what’s next ?? Let’s see.
Technical analysis of Nifty and Banknifty
Candlestick
Daily chart of NIFTY50
Overall strong bullish trend and now heading for 11700. When Nifty50 was near 12000 same was support, and now it’s Resistance. Also, note Nifty50 is now rising with spinning top candles in the daily chart, unlike strong Bullish MARUBOZU which suggest Bulls are in control but not as strong as in the past. Yet no consolidation on the upside or any bearish signal yet.
Weekly chart of Nifty50
Weekly chart suggesting same 11700 level as immediate Resistance. It formed Bullish MARUBOZU candle this week as Bulls are in control but small dip on the upside from 11700. This is the same level from where in Sept 2018 Nifty50 saw fall when it failed to cross 11700 , it went to 10200 before next upside. Immediately after that we have small dip before crossing 11700 but If crossed then next psychological Resistance of 12000.
Nifty bank
Nifty bank is super bullish at the moment. As u can see Bullish MARUBOZU candle suggesting more Upside but important thing is it broke 100 day EMA also. So now heading for 25000 , if break Friday’s high comfortably then I expect 27500 very soon.
PIVOT POINT ( SUPPORT and RESISTANCE)
For Nifty50
Previously we have given 11350 and 11480-500 strong resistance for Nifty50 and explained it as well. Now same level is strong support, and On the upside 11700 is an immediate strong resistance zone, but if broken, then we will see 11900-12000 as the next Resistance zone.
11400 will be strong support in case Nifty goes on the downside, and if broken further, then 11100 and 10900 both will act as strong supports. But as of now, no sign of bearish movement.
Nifty Bank
The moment Nifty bank broke our zone of 23000-23200 see the madness in Nifty bank. 25000 is first immediate Resistance but if broken then 27000-27500 will be next Resistance.
If it goes downside then Friday’s low will be first support near 23500 and next support will 23000 . As previous strong resistance is now strong support.
Moving average -:
Nifty50
Nifty is way above all crucial moving average 20,50,100 and 200 day. Most importantly it was taking 20 day moving average as Support but now it’s taking 5 day EMA as support when it become super Bullish . So when it start breaking these on the downside you can consider supports placed as 5 day then 20, 50, 100 and then 200 day last crucial support.
Nifty bank
23900 was 200 day EMA for Nifty bank which was broken by Nifty bank. Now , it will be a strong support for Nifty bank.
PCR ratio -:
Below 0.7 = Over sold
Near 1 = Neutral
Above 1.5 = Over baught
Put call ratio for
Nifty-: 1.354
And in Nifty bank = 1.581
So, as per PCR ratio, Nifty and Nifty bank both are in Bullish zone , but the moment it stays above 1.5 for long it gets overbought zone. So we expect some dip from there.
Nifty PE ratio
Nifty PE ratio is already past 31 that’s possibly because low earning and low standards as well. Still Nifty50 is not much far now from all time high so it’s always best to be stock specific.
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 Banknifty both are super bullish at the moment. For Nifty our BREAKOUT LEVEL was 11350+ and For Nifty bank our BREAKOUT LEVEL was 23000-23200 zone. You seen how returns it gave from there…it’s huge. Now what next ??
If Nifty50 break 11700 comfortably then I am expecting attempt to reach 12000 for sure and in Nifty bank if Friday’s low of 23500 remain safe then we might see Nifty bank going for 27500-28000 very soon.
On the downside take Friday’s low as SL for both Nifty50 and Nifty bank , if broken then 11400-11100-10900 are levels for Nifty and 23000-22300-21000 are levels for Nifty bank
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. Federal bank was given last week at 55 now 60+ ..10% gain 🔥
2. Buy View on Reliance @2113 made a high of 2150 🔥
3. Buy view on vinati organics @ made a high upto 1200 🔥
4.sell view on jindal steel @223 made low of 213 🔥
Let’s see stocks of this week now,
- Ujjivan
Ujjivan is super bullish at the moment and after long time we have a BREAKOUT here in both daily and weekly chart.
Ujjivan daily chart has pole and flag and BREAKOUT with Bullish MARUBOZU candle, not just that see the weekly chart also 👇👇👇
In weekly chart also Ujjivan is giving BREAKOUT with pole and flag .
Now immediate Resistance on the upside is 278 ..if crossed then 300 will be psychological Resistance, 316 is 200 day EMA which will be strong resistance but if crossed then more upside from there.
What Nifty pharma suggest ??? and two best pharma stocks which can give a bumper return in the coming month, those are ?? also one more Bonus stock.
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Awesome analysis and rationale is very clear.
Thank you
Thank you sir