Market analysis for next week

In the last week's Market Analysis we have discussed that market was bullish and sentiments are also positive. We can see higher levels in coming days. Currently, market is in uncharted territory and making new lifetime high.

Nifty is up by 0.82% and BankNifty is flat and down by 0.69% 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 6.7% in these five stocks that were shared.

This week I have shared technical and fundamental analysis of one penny stock: Gennex Lab. The stock can give good returns to traders and investors both. Checkout the analysis video:

https://www.youtube.com/watch?v=VtrVJ94hbck

Don't forget to like and subscribe to our channel for more informative videos in the future.

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

• States help struggling cinemas cut costs, but exhibitors desperate for liquidity

• HDFC to raise up to Rs 2,000 crore by issuing bonds

• Dabur takes Marico to court over Saffola Honey packaging

• Rockwell Industries ties up with DRL for freezers to store Sputnik V COVID-19 vaccine

• IndiGo expects further momentum in air travel demand by July

• Yes Bank to raise fund via bonds in Indian/foreign currency

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

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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:

Currently, Nifty is creating new all-time high levels and is trading in uncharted territory. Previous all-time high level (15430) will act as a support for short term. If this breaks then next support is at 15000. Strategy in Nifty would be buy on dips. Wait for the Nifty to go near those two mentioned support levels and then buy. Psychologically 16000 would act as a resistance level. This level needs to be broken by a gapup for strong up move.

• Doji in Nifty:

On Friday, Nifty has formed a perfect Doji. Currently, the trend was up and this doji is formed. High and low of this doji is very important for next week. If Nifty breaks and sustains above the high, then we can see upside and if it breaks and sustains below low, then we can expect minor dip in Nifty.

Look to add stocks for short term if Nifty approaches support level at 15430 or 15000.

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• 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.

BankNifty is just consolidating near its previous demand region. It might be getting ready for a big move now.

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

1. Nifty Auto

2. Nifty Bank

3. Nifty Energy

4. Nifty Fin Service

5. Nifty Infra

6. Nifty Media

7. Nifty PSU Bank

8. Nifty Pvt Bank

9. Nifty Realty

Major sectors are positive still.

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

• Dr Reddy (Daily chart)

Dr Reddy giving breakout above resistance line after trading near that level for around one month. For short-term stock is positive.

• Hero Motocorp (Daily chart):

Hero has given a breakout already, and now it is retesting those levels. Offering low risk buying opportunity for traders.

• ITC (Daily chart):

ITC is trading near demand zone and it is offering low risk buying opportunity currently.

• TCS (Daily chart):

TCS giving rounded bottom breakout. Major resistance would be all-time high level of 3340. Above that it has huge upside potential.

I do share few trades on Twitter/Telegram as well. Recently we have bought Thyrocare, and it is up by 15% in one week. You can follow us on Twitter and Telegram.

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.

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

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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.

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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:

1. Starting with Charting, Tools and Setup

2. Identifying Trend in Market

3. Demand and Supply

4. Resistance and Supply

5. Candlestick

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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.