NIFTY WEEKLY STUDY
Last week we mention that nifty having important support level at 5750 and closing below this level only given fall in a market, nifty given a close at 5735 but next day it not able to confirm this direction and reverse from there which took nifty to 5950 level.
If we look at the daily chart development of nifty spot we can observe many things here.
We can see that nifty has taken a support on its demand trend line in last two sessions, so this indicated the reversal in market.
When RSI moved below support line market not able to move below its support line, so this indicated that PRICE can drag the RSI again into the overbought zone, so this is one more possibilities of trend reversal from here.
if we look into the candlestick pattern we can observe many things here, just two days back it has given a“BULLISH HARAMI” candlestick pattern on chart with the HARAMI candle as a “HAMMER”. so it’s kind of dual confirmation of reversal which took place at trendline support level.
also it has given a reversal signal with “ISLAND CLUSTER REVERSAL” and this ISLAND also has form a two bullish reversal candlestick patterns as i mention above.
only thing to watch is i have drawn a yellow line on chart which is shows that nifty is having resistance at 5950-60 level, so once it able to cross this resistance we can see it touching the recent high level, which is near 6150 level.
one more thing we can say is its kind of ” ASCENDING TRIANGLE” development on chart which can also indicate that nifty will try to touch the 6150-6250 range, and if able to stay above 6250 range for 2-3 trading session then we can possible see triangle breakout on upper levels.
so with all this study finally we can say that market still having support range at 5700-5750 range, so if able to give two negative close below this levels, then only we are going to see some fall or i can say correction in market, till the time, market is ready to take every support which can take the levels till breakout point and next decision is to taken at that point itself.
So with the current chart study we can say that downside 5700 good support and major resistance level is 6000 in coming days, two close beyond this range will give proper direction to market.
Bank nifty
Last week we mention that bank nifty is in falling zone now and support at 9750 level, below this level we mention that 9550 can come, and bank nifty move till 9580 levels.
As per the current chart development in bank nifty we can see that, bank nifty has taken the support on its demand line which falling in direction, it able to go below this line, but next day it not able to confirm the same and given the positive close, and this was confirm the reversal in trend in bank nifty.
RSI also taken the support on its trendline, and as per the original direction RSI and price has given a bounce in last week.
As per the candlestick pattern we can see that it has given a “TWEEZER BOTTOM” pattern before 3 session, and its also given a DOJI candle in last session.
So overall consideration is market able to reverse from its support level now, but next move in bank nifty is expected only if it able to give positive close above 10350 for 2 continued session, then we can see up movement till 10550-10850-11350
If it able to give negative close from here, then down side support is 9850-9500-9200-8800 levels.
LAST WEEK CALLS PERFORMANCE
TATA STEEL SELL 284 TO 266 = 6.5%
AUROPHARMA 206 TO 214.5 = 4%
GLENMARKPHARMA 518 TO 559 = 8%
BHEL SELL AT 140 TO 135.5 = 3.5%
Calls for coming week
Buy AJMENRA above 70 close sl 55 target 85-100
Long term buy call VIMTA LAB if close above 35 sl 24 target 50-70
Buy ONELIFECAP above 275 sl 235 target 315-370 if this call able to close above 315 anytime then hold for long term target till 600-700 range.
Buy AIL above 360 sl 310 target 395-435
Buy GODREJCP above 900 close sl 800 target 985-1100