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Market analysis for next week

  • Writer: Yash Mehta
    Yash Mehta
  • Jun 5, 2021
  • 4 min read

Updated: Jun 12, 2021



In the last week's Market Analysis we have discussed that market was bullish and sentiments is also positive. We can see higher levels in coming days. Currently, market is in uncharted territory finding out resistance based on price action is not possible.


Nifty is up by 1.52% and BankNifty is flat and up by 0.4% in last week. Also, some of the stocks were shared for short term and their performance in this week was:


Net we made returns of 10.1% in these 4 stocks that were shared.


Last month we had picked EaseMy Trip, and I had shared it with investment group members. Stock has given more than 100% returns in one month's duration. In this video, I have shared the rationale behind buying this stock.



Subscribe to our channel and like the video as it keeps us motivated to share more analytical videos like this in the future.

Some of the major news and events that happened in this week are:

Click on the news and it will redirect you to the article.

Now let's see what can happen in Nifty, BankNifty and broader market for next week. Some charts of the constituents are also shared at the end as a bonus for all the readers, so read until the end.


We won't be looking at weekly chart as the support is currently far from current market price.

Nifty weekly support is 13600 and BankNifty weekly is 29000.


  • Nifty

Daily time frame chart:

We will carry forward with the analysis that was shared last week. Currently Nifty is in uncharted territory and based on Fibonacci retracement possible resistance on upside can be 16070 levels. Also, after breakout above all-time high levels, Nifty possible target in coming months would be 16400-16700. From above chart, Nifty's previous all-time high will serve as a support now for Nifty for upcoming days.


We keep our analysis blogs simple for our readers and clearly Nifty is bullish and market is in buy on dips mode. Utilize dips in the market to buy good stocks for short term.

  • BankNifty

Daily time frame chart:

Currently BankNifty is trading in between these demand (34200-34450) and supply (36350-36550) zones. If supply breaks then possible resistance for BankNifty would be it's all-time high 37708. Although Nifty is trading at all-time high levels, BankNifty is still 7% away from it's all-time high. If BankNifty reaches that level, then it will give more strength to Nifty because Banking shares has a huge contribution in Nifty.

Some sectors that are looking good for short term and positional trades are:

  1. Nifty Auto

  2. Nifty Bank

  3. Nifty Commodities

  4. Nifty Energy

  5. Nifty Fin Service

  6. Nifty FMCG

  7. Nifty Infra

  8. Nifty Media

  9. Nifty PSE

  10. Nifty PSU Bank

  11. Nifty Pvt Bank

  12. Nifty Realty - It is a fresh sector that is becoming positive. Some of the stocks in this sector can give good returns in the short term.

This is broad based rally and currently market is bullish and one can use buy on dip opportunities in the short term to buy good stocks among these sectors.

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


  • LT (Daily chart)


LT forming rounded bottom in this consolidation phase. We can expect all 1593 levels and breakout above this level will push it higher. One can start accumulating this with stop loss of 1430. Target can be 1880.


  • Ashok Leyland (Daily chart):


Ashok Leyland give breakout above the resistance line. One can look to add this at Current price. Stoploss should be 119 and target can be 157.


  • Tata Motors (Daily chart):


Tata Motors similar chart to the Ashok Leyland. It has given breakout above resistance line. One can start buying this on dips and at current price. Stoploss should be 310 and target can be 408.


  • Sunteck (Daily chart):


Sunteck after this downtrend and formed a rounded bottom/base. It has given breakout already. One can look for target of 348 in this and Stoploss would be 276.


  • Oberoi Realty (Daily chart):


Oberoi was in consolidation for 5 months and pattern is similar to Nifty and LT. With good volumes, it has given strong breakout. One can look this on dips for short term. Stop loss should be 590 and target can be 745.


One of the special feature of our charts is that we look for the opportunity that has less risk and high reward. Even if our accuracy is 50% then also we are net profitable at the end of the financial year. I do share few trades on Twitter also and we have booked in trades with Risk-Reward of 1:10. You can follow us on Twitter.


I am sharing these charts only for study purpose. One can track these stocks for short term perspective. Plan your trade with proper stop loss and target and then take action.

I will share more chart other than this on our YouTube channel and will show to calculate target price and time duration of holding. So you can subscribe to the YouTube channel.


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

Conclusion:


Currently, market is looking bullish as it has broken resistance and supply zone. Short-term sentiments are bullish and one can use buy on dips opportunity in short term.

One can master this simple art of Technical Analysis by reading following blogs and practicing daily.


Readers can checkout and read first three blogs of Technical Analysis here:

This week we have shared analysis on Paytm business because soon they will come out with their IPO. Do checkout the blog: Paytm Karo!

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.


Don't forget to give a Like to this blog if this has helped you. It serves as a motivation for us to share more analysis blogs with our friends.

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