Weekly Analysis 3-7Aug20 of Nifty and Banknifty & best 4 stocks

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What Happened Last week from 3rd -7th August Nifty and Banknifty?

On the first day of the week, Nifty broke support of 11100-11000 and also 10900, but after that Nifty broke support of 10865, made a high of 11256 but formed a spinning top candles onwards till Friday. Nifty and Banknifty

Now for the downside, Nifty has to break 11000 again and also the 10800-10850 zones for more downside ahead towards 10400.

For the upside, breaking 11300 won’t be easy for Resistance to break, but if broken, then I am expecting a min 150-200 point upsides in NiFTy50 plus, then 11300 will become a strong support zone instead of Resistance. So far ,

1.            Corona cases are keep rising steadily, and experiments with the vaccine are successful in stages but no launches yet.

2.            RBI kept the monetary policy rate unchanged.

3.            No relief for Schools , hotels (food courts) Gym, sports, and also Multiplex Theaters. Especially in contentment zones.

4.            Crude oil, World Market all are rising steadily (we explained in detail in the first article the reasons) as both had seen big falls in past. Due to uncertainty in the currency thanks to corona, GOLD rising too. So beware, either one of them will fall first.

Let’s see Detail Analysis of Nifty50 and Nifty bank. Also stocks to watch out for next week.

Technical analysis of Nifty and Banknifty

Candlestick

Daily chart of Nifty50

Nifty50 on the first day of the week broke all supports but bounced back from major support near 200 days EMA. You can see all candles are spinning top / Doji which tells you a big move is on the way very soon in NiFTy50.The weekly chart of Nifty50.

 Weekly chart is suggesting same at the moment. For the last 3 weeks the consolidation box has not been broken, so now the weekly candle has to close above or below this box for the Big rally.

Nifty bank

Unlike Nifty50, we saw movement in Nifty bank on both sides. On 3rd August it bounced back from its strong support of 21000 and then hit back from the 22000 levels. I am expecting one more attempt on the upside, but only if 21000 stays safe.

 PIVOT POINT ( SUPPORT and RESISTANCE)

For Nifty50

The small range of Nifty will be 11150-11250 as it will be very hard to break. So remember, don’t sell near 11150 and don’t buy near 11250 without tight SL. E

On the downside, as I said before, strong support is 11000 and then 10865. There will be 11250-11300 on upside strong resistance. If Nifty close above the HIGH of 28th July 11300, we will see a fresh rally on Upside in NiFTy50.

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 22000. If crossed, then very tuff Resistance ahead will be 23000-23200.

Moving average -:

Nifty50

10865  is 200 day EMA for Nifty50, and that will remain strong support, but immediate support will be 11150 (5 day EMA) and then 11000 ( 20 day EMA). 

Nifty bank

21614 is a 50-day EMA in Nifty bank. And 21820 is 20 day EMA will be a 20-day EMA in Nifty bank.

If 21820 is broken, then 22285 will be 100  100-day EMA and next strong resistance.

PCR ratio -:

Below 0.7 = Over sold

Near 1 = Neutral

Above 1.5 = Over baught

Put call ratio for

Nifty-:  1.223

And in Nifty bank = 0.989

So, as per PCR ratio, Nifty and Nifty bank both are just near the NEUTRAL zone .

Nifty PE ratio

Nifty PE ratio suggesting BULLS to get cautious as Nifty PE ratio is above 30 for the first time ever, which is near the Overbought 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,

Small range remains 11150-11250 as of now . Consolidating is not good for Traders, so better wait for the Nifty to break on either side and then take a trade.

Big range will be 10850-11300. If we cross either of them, then we will see a huge rally in the market.

For Nifty bank

If 21000 stays safe, then I m expecting one more attempt soon to break 23000, and mainly SBIN will contribute to it. No big downside in Nifty bank unless it close below the 21000 marks, that’s a make or break level. And on upside 22000-22200 will be a strong resistance zone.

Big BREAKOUT range for Nifty bank will be 21980- 23200. If Nifty bank breaks on either side from here, then an absolutely huge rally is possible.

Stocks of the week

Let’s see 5 stocks of this week, but before that, lets see last week’s performance.

1.            Relaxo was given at 595 and Suggested more buy near 580. Now at 630-635, more upside is expected here.

2.            Sunpharma was given at 531. Went 540 and hit the Resistance. Still a good buy as I am expecting a target of 560-570 here soon.

3.            Pidilitind was given at 1357 now 1390+, more upside expected if it crosses 1400.

4.            Natcopharm was given at 782 and the next day it touched 825. Now again at 780 if you cross 825, then 5-7% target ahead

5.            Axis bank was at 431 views, it was given for 410 and then upside.. The next day went 415 and now 433 again. 410-440 are BREAKOUT LEVELS.

Let’s see stocks of this week now,

  1. State bank of India

SBIN as of now is in a consolidating zone between 180 and 200. Breaking on either side, we will see a big rally.

188 is a 50-day EMA, and 180 is a support zone on chart

And 200.5 is also 100 day EMA and Resistance for SBIN, but if broken, then there will be strong resistance, which is 200 day EMA

Macd, Henkin ashi, and also Doji Candlestick in daily and weekly chart suggest there is indecisiveness at the moment.

But put call ratio is 0.537 and PE ratio is 0.537 suggesting stock is oversold and upside ahead.

Now Bottomline ,

If you want to take a trade, then avoid it as stock is in NO trading zone. (Either below 180 or above 200)

If you want to add SBIN for investment purpose, I think you have a very good price, but it has to break 200 for upside. If you want to add again, then do it at 180.

अगर आप को investment के लिये sbin लेना है या लिया है. फिर आप अभी add कर सकते है.  पर upside तब आएगा जब शेअर २०० के ऊपर close हो जायेगा. अगर आपको दुबारा इसे average करणं है तो १७५-१८० पे किजियेगा. मेरे हीसाब से बहुत जलद २०० क्रॉस हो जाना चाहिए अगर मार्केट supoort करे तो.

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2 thoughts on “Weekly Analysis 3-7Aug20 of Nifty and Banknifty & best 4 stocks”

  1. Your technical analysis is to help investors make a more financially sound investment decision, it also help them identify potential trading opportunities
    including what to trade and when to buy and sell.
    I want to know future trend in rain industries , please suggest .

    Reply
    • Hello sir ,

      Thanks for the appreciation but training will be fruitful only if it’s applied on live market regularly. It will come with practice.

      Trading will be next level study when someone is master in Technical Analysis like indicators MACD , RSI , Bollinger band , chart patterns nd Candlesticks. That’s how you understand your entry and exit point in a stock.

      For example , If hammer with good volume at bottom ..that’s your buy and with that’s candles Low as SL. Similarly pole and flag pattern once BREAKOUT comes…it’s ur buy with breakout candle’s low. All such articles are posted and remaining will be posted soon

      Once u master in these basics ..you can get into the flow of Trend and then Trade accordingly in ongoing trend and trading involve two more concept risk and money management. We will cover it but it will take time.

      Lastly , rain industries as of now look good on daily chart for a buy with 119 as weekly 200 point EMA has to cross for more upside.
      But please avoid Penny stocks Especially that which was once near 400 and now 100-120.
      You can check our weekly Analysis every weekend and stocks we provide. Also for stock querries please use contact us option on weekend. ( 2 stocks only but no penny stocks as they are operator driven and manipulated )

      Reply

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