Market Analysis for next week

Market last week was very volatile. We have seen gap up followed by sell off on same day and also gap down followed by buying pressure taking Nifty up.

Let's see what can happen in Nifty for next week. Some charts of the constituents are also shared at the end, so read till the end.

Starting with long-term chart or higher time frame (Weekly Chart)

Nifty weekly chart is still in uptrend and it didn't form lower lows or broke previous low yet. Positional Traders and Investors can still hold their position and try to use the opportunities to average or pyramid your position.

As long as we are above 13600 and Nifty doesn't close below 13600, there is nothing to worry. Weekly closing below 13600 will be a trigger for bulls to exit.

Let's look at a daily chart of Nifty and analyze what price action says.

We can see a good demand zone for Nifty and 14200 is good support. If Nifty closes below 14200, then daily chart of Nifty will turn bearish and short-term traders should exit. As long as Nifty is trading above 14200; one should use this opportunity to buy stocks for the short term.

Also, there is double bullish divergence on Nifty daily chart. It is a sign of strength in Nifty and one can add stocks for short term and keep proper stop losses. If Nifty closes above 14527 will fuel in more strength in Index and Market. This bullish divergence will fail if Nifty closes below 14150.

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Now let's see BankNifty chart.

Starting with long-term chart or higher time frame (Weekly Chart)

BankNifty weekly chart is still in uptrend and it didn't form lower lows or broke previous low yet. Positional Traders and Investors can still hold their position in Banking stocks and try to use the opportunities to average or pyramid your position.

As long as we are above 29000 and BankNifty doesn't close below 29000, there is nothing to worry. Weekly closing below 29000 will be a trigger for bulls to exit.

Let's look at a daily chart of BankNifty and analyze what price action says.

This chart I had shared on Twitter two weeks back and this chart is still intact. BankNifty is hovering that support trendline and had given two false breakdown below that line. If we sustain above this trendline i.e. 31700, then BankNifty can see decent short covering and trap bears.

Also, there is bullish divergence on BankNifty daily chart. It is a sign of strength in BankNifty and one can add Banking stocks for short term and keep proper daily closing basis stop losses as low of the divergence candle, i.e. 30400.

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Let's see some chart of Nifty 50 and BankNifty constituents.

• ITC (Daily):

• HindUnilvr (Daily):

• Reliance (Daily):

• Axis Bank (Daily):

• Hdfc Bank (Daily):

• Icici Bank (Weekly):

• Hdfc (Daily):

I am sharing these charts only for study purpose. One can track these stocks for short term or long-term perspective. Planned your trade with proper stop loss and target and then initiate. Few readers would be confused on reading the term Demand / Supply zone or support trendline. Don't worry, I have started an initiative and started writing blogs on Technical Analysis where I will cover every basic and advanced thing I use in my Technical Analysis. Tomorrow new blog on Demand and Supply will be released, one can read that and revisit this blog again. First two blogs are:

1. Starting with Charting, Tools and Setup

2. Identifying Trend in Market

One can read these blogs by clicking on the title and share it with others so that they can join us in this Technical Analysis Series.

Also, if you have any chart that we can track then share it with us in the comment section.

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Earlier I used to do and share Market Analysis for next week but because of tight scheduled I had stopped it. Now I will continue this again and will post Market Analysis for the upcoming week on every Saturday. I used to share Option Chain Analysis also which most reader didn't understand and didn't like so if you want I should start with Option Chain Analysis of Nifty and BankNifty again then mention it in comment section. Instead of that I will share chart of few stocks that one can track and keep it in watchlist for next week.

Conclusion:

Currently, market is volatile, and it is seeing big moves in intraday as well. Market is offering low risk buying opportunities for traders and investors to buy stocks and average/pyramid their position. Often it is seen that at peak of negative news market creates its short-term or long-term bottom. Unless sentiments or some different negative news doesn't come, then only Market will break its long-term demand zone that is Nifty (13600) and BankNifty (29000)

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If there is something that I can improve upon, then please suggest that too so that I can create true value in this our Market Analysis.

Thanks for giving your precious time in reading this blog. I hope I have added value to your market analysis for next week. Like and Share with others too if we can create value for others .